Rendell taps Masch for budget post

Penn's budget guru Michael Masch is joining the Rendell administration in tackling Pennsylvania's financial crisis. The vice president for budget and management analysis will leave the University and assume his position as budget secretary for the governor-elect. However his Penn position will not be filled permanently. "I am honored and humbled and challenged by this appointment," Masch said in a conference call on Friday from Italy. "It is a great team, and I am privileged to be a part of it." When Rendell and his team assume their new positions on Jan. 21, they will inherit a severe budget deficit approaching $2 billion. Hoping to ameliorate Pennsylvania's dire financial situation expeditiously, Rendell has appointed a bipartisan budget task force, which Masch will chair. Masch is not sure when he will return to his position at Penn. "I am not focusing on when I am returning to Penn," he said. "I am focusing on balancing the state budget." "The University of Pennsylvania is a strong institution," he added. "I enjoyed my work at Penn tremendously." University President Judith Rodin praised Masch's accomplishments during his six years at Penn, and Masch said the long-term financial planning he implemented "would take years for them to mess up." Rodin agreed with Masch, expressing that he will be missed, but his departure will not adversely impact the University. "We will miss him, but we are in great shape as a result of his effectiveness here," Rodin said. "We will continue to follow the practices and the toughness that he imposed on us. We have a terrific board and a phenomenal team. They will not miss a beat." Bonnie Gibson, executive director of administrative affairs for the office of the provost, will assume the role of acting executive director of budget and management, while continuing to serve in her current capacity. "Gibson is sensational -- she has worked very closely with Mike," Rodin said, adding that Gibson is well prepared. During the 1990s, Masch served then-Mayor Rendell in relieving budget deficits that plagued Philadelphia. In a landmark financial turnaround, Masch and Rendell brought the city from the brink of bankruptcy to surpluses and tax cuts. During Friday's conference, Rendell commented on Masch's service to Philadelphia. "Mike did a super job at helping us contain spending while finding new ways to generate revenue," Rendell said, adding that Masch is the "unsung hero" of Philadelphia's financial turnaround. In the past three years, Pennsylvania has seen large budget deficits, and the "rainy day fund" -- created by former Governor Tom Ridge to account for the budget -- is depleting rapidly. Rendell said he expects that by working in a bipartisan manner, he will be able to bring the success he achieved in Philadelphia to the state level. And although Masch's resume underwent scrutiny a year ago after he admitted he never earned a bachelor's or master's degree, Rendell is nothing but confident in his new appointee's abilities to help him accomplish this goal. "I selected Mike for this critical post not only because he is one of the best at what he does in America," Rendell said in a press release, "but because we've succeed[ed] together in the past, and he shared my vision for balancing budgets while improving services." "We all want a better Pennsylvania, and we all realize the economic problems we face," Masch said. "Property taxes are way too high, senior citizens are in desperate trouble of losing their houses while young people can't buy houses." "We will have to roll up our sleeves," Masch said. Masch, 52, will earn around $130,000 a year -- down from his near-$200,000 salary at Penn but up from that of Pennsylvania's previous budget secretary. Masch "is making a substantial sacrifice coming to state government," Rendell said. "He is not doing this for the compensation."