Haas Dean Named State Finance Director

Dean of the Haas School of Business Tom Campbell will take over the state's Department of Finance, guiding the state as it tries to navigate its way out of a fiscal crisis, Gov. Arnold Schwarzenegger announced yesterday in Sacramento.

Campbell will leave his UC Berkeley post in December to serve as the governor's chief fiscal advisor. He will go from managing the Haas School of Business' $40 million budget to overseeing the state's $100 billion spending plan and will try to fix the up to $30 billion dollar state debt, Campbell said.

"It's a tremendous challenge," Campbell said. "I had no idea that the governor was considering me for this job. I didn't apply, so it was rather surprising."

Although California's fiscal problems have taken a positive turn in recent years as the state has chipped away at its $36 billion shortfall, state spending continues to overwhelm tax revenue.

While the state has financed some of its deficit with loans, it continues to accrue billions each year in debt, a problem Campbell said he is going to solve in the next year.

Campbell said he was appointed to the state's top financial post after speaking to Schwarzenegger three times on the phone and meeting him only three times in person. He has also counseled Schwarzenegger on economic policy since mid-September as a member of the governor's 16-member Council of Economic Advisers.

"He'll be the governor's go-to person in all things involving state budget and fiscal policy," said H.D. Palmer, spokesperson for Department of Finance.

When former Finance Director Donna Arduin packed her bags for Florida after her one-year commitment expired last month, members of the Council of Economic Advisors recommended Campbell to fill the vacant position, Palmer said.

Sharing Schwarzenegger's economic philosophies, Campbell says he leans toward more conservative economic principles.

"There's some people who are pretty moderate, Campbell being one of them," said economics and law professor Alan Auerbach. "He's a mainstream Republican in his points of view."

Campbell said he will be thinking in the long-term to jump-start economic growth, balance books and fill the needs of a growing population.

His top priority as director will be luring businesses back to California and creating more jobs, he said.

"Getting jobs for other people is the most important thing I can do," Campbell said. "More business growth means more jobs for people, and that will help with revenue, help with all the social issues."

As finance director, the dean will have to broker compromises between Democrats and Republicans, serving as a bridge between the two parties in the Legislature, Palmer said.

"Tom has ... great public policy experience, great economics experience, great experience working with both Democrats and Republicans," Palmer said.

Campbell, a one-time law professor at Stanford University, practiced as a lawyer and served five terms as a Republican U.S. representative before coming to UC Berkeley.

Currently at the midpoint of a five-year appointment as dean, Campbell said the director position is not a career stepping stone.

He plans to serve Schwarzenegger for two budget cycles-until 2006-before resuming his position as dean.

He will continue living in Berkeley, either commuting to Sacramento or finding a small residence in the capital, he said.

In the meantime, the university will look for an acting dean, said Ute Frey, a spokesperson for Haas Business School.

"Part of the mission of a great university is public service, so we are pleased to loan Tom to the state where his keen understanding and expertise will benefit all Californians," said Chancellor Robert Birgeneau in a statement.

Josh Keller of The Daily Californian contributed to this report.

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