Schwarzenegger Budget Director to Step Down as Deficits Loom

California Governor Arnold Schwarzenegger’s finance director plans to step down after four years of crafting budget proposals for a state that has been battered by the U.S. recession.


Mike Genest, Schwarzenegger’s longest-serving finance director, will leave whenever a replacement is found, said H.D. Palmer, a spokesman for the finance director. Genest, 62, told Schwarzenegger a month ago that he was considering leaving and expected to do so before the end of the year, Palmer said.

The departure comes as Schwarzenegger, a Republican who can’t seek re-election because of term limits, girds for his last political struggle over the state’s $85 billion budget. As tax revenue continues to slide, California is expected to have a deficit of at least $7 billion for the year that begins in July, according to Treasurer Bill Lockyer. Legislators eliminated $60 billion in budget deficits for 2009 and 2010.

“Mike Genest’s tenure has been one of the most challenging fiscal times in modern California history,” Palmer said. “He has served the governor, the public and the Legislature extremely well.”


Genest’s planned departure was reported by the Los Angeles Times.

- Via Bloomberg