Rendell names new budget secretary

HARRISBURG - Gov. Rendell yesterday promoted the state's chief financial officer to serve as his next budget secretary.

Mary A. Soderberg, 57, replaces Michael Masch, who left the administration to become the Philadelphia School District's chief business officer. Masch had served as Rendell's budget chief since the Democratic governor began his first term in 2003.

As Masch's chief financial officer and executive deputy secretary since August 2005, Soderberg was responsible for overseeing budget preparation and implementation, financial reporting, debt administration, and internal auditing.

She will be paid $148,000 annually as budget secretary. Her appointment does not require Senate confirmation.

"Her broad experience in public finance, as well as her background in the state legislature, will continue to guide her in her new position," Rendell said in a statement.

Her appointment comes three days after the legislature approved a $28.3 billion budget for the 2008-09 fiscal year. The budget increases spending by 4 percent without increasing broad-based taxes or fees, but it uses some one-time maneuvers to support the expenditures - such as abandoning plans to transfer $138 million of surplus money into the state's Rainy Day contingency fund.

Still, the state ended the 2007-08 fiscal year with a $167 million surplus, showing that its finances are relatively healthy compared with those of other states facing major deficits, Soderberg said.

"I think we have positioned ourselves well to deal with 2008-09," she said.

Before joining Rendell's administration, Soderberg spent two years as vice chancellor for finance and administration of the State System of Higher Education.

She also served as the Democratic executive director of the House Appropriations Committee from 1992 to 2003.