Schwarzenegger's budget director to step down

Gov. Arnold Schwarzenegger's finance director is stepping down after four years, leaving the administration to fill a key vacancy as the state faces what is expected to be another multibillion dollar deficit.

Finance Director Mike Genest announced Monday he would retire after the governor finds a replacement. The governor's office has not decided on a timeline for identifying a successor.

Finance Department spokesman H.D. Palmer said Genest was leaving voluntarily but has yet to decide his next move.

The 62-year-old Republican has served as Schwarzenegger's chief budget writer and has dealt with steep deficits and spending reductions in recent years.

Palmer said Genest is vacationing in Mexico and was unavailable for comment.