A joint Finance/Ways and Means subcommittee voted Thursday to nix the proposed combination of the tourism and economic development departments.
Gov. Jim Gibbons proposed the merger, saying it would save $1 million over the biennium. But lawmakers said the only apparent savings was the salary of the tourism director and his administrative assistant.
And there was testimony that the two departments' functions are completely different.
The panel also voted to restore $1.5 million a year to tourism's advertising and marketing budgets.
Senate Majority Leader Steven Horsford, D-Las Vegas, said marketing Nevada is tourism's primary reason for existing.
"If you undermine your primary function, the rest doesn't matter," he said.
The governor's budget chopped the $9.1 million budget in half. The committee vote raises it to $6 million in 2010 and $6.6 million in 2011.
In addition, they voted to move other funds around in the department to add another $500,000 a year to that budget.
Finally, lawmakers cut the budget for the China office in half to $125,000 a year and put that freed-up money into marketing as well.
Gibbons recommended combining the economic development and tourism commissions into one and eliminating the tourism director as a money-saving plan.