Editor’s note: Morgan True contributed to this report.
[G]ov. Peter Shumlin announced on Wednesday that longtime budget chief Jim Reardon is retiring from state government.
Andy Pallito, the commissioner of the Department of Corrections, will take Reardon’s place at the helm of Finance and Management. Both Pallito and Reardon are holdovers from the administration of Gov. Jim Douglas.
Reardon, 57, started working in state finance 30 years ago, and cut his teeth as deputy finance commissioner and financial operations manager for the Agency of Human Services.
The budget chief has been a key leader in the state’s financial management and has served under five governors.
Shumlin couldn’t “say enough good things about Jim Reardon.”
“His mastery of the state budget is unprecedented. Vermont has benefited greatly from Jim’s 30 years of service,” Shumlin said in a statement. “His steady hand and quick wit will be missed. I wish him the best in a well-deserved retirement. Jim leaves some big shoes to fill, but I know that Andy will be up to the job. We’re excited to welcome him to the Fifth Floor team.”
In an interview, Reardon said he is retiring from state government, but he doesn’t want to stop working.
And while the commissioner was accepted for the state’s new retirement incentive program, he said that wasn’t a driving factor. “I want to be very clear about that, I was planning on leaving irrespective of the retirement incentive,” Reardon says.
Reardon says there was “no further incentive” for him to stay in state government, and he feels he has a good team in place at the Department of Finance and Management that can carry the work forward.
Reardon is renowned for his work ethic and has for years sacrificed evenings and weekends to craft and adjust proposals that have helped the state balance the budget. He recently won a coveted National Association of State Budget Officers award.
Three weeks ago, he had open heart surgery and went back to work earlier this month.
Reardon will stay on until the end of October to help Pallito, who will report to the Fifth Floor on Monday, to transition into his new job.
In order to be successful, Reardon says Pallito will need to find a way to work with the Joint Fiscal Office, the Legislature and the elected officeholders. “You need to be a good listener,” he said.
This year’s budget balancing act will be more difficult than usual to resolve. Reardon has for the past seven years found one-time funds to fill an ongoing gap between state spending and state tax receipts. The state faces another $50 million to $70 million gap in 2016.
“It’s going to be tough,” Reardon said. “I haven’t quite looked under the hood far enough to say just how tough, but it’s going to be challenging. I think each year gets more difficult because without any real underlying systematic substantial change you run out of options or your options get more narrow each year.”
Agency responses to budget guidelines are due Sept. 25. Reardon will be working closely with Pallito to review the responses.
Other changes in the Shumlin administration
Jenn Hollar, the commissioner of the Department of Housing and Community Development, is leaving the administration to take a position with the Vermont Housing and Conservation Board.
Hollar has been an advocate for affordable housing and was instrumental in helping Vermonters who were washed out by Tropical Storm Irene find housing alternatives.
Shumlin has tapped Lisa Menard, the longtime deputy commissioner of the Department of Corrections, to take Pallito’s place at the helm of the state’s prison system. Menard has worked for the corrections department for 28 years and became Pallito’s deputy in 2008.
Richard Tetreault, longtime chief engineer and highway division director for the Agency of Transportation, will take Chris Cole’s place as deputy secretary of the agency. Cole stepped in to become secretary of VTrans after Sue Minter announced she was leaving the agency to run for governor.
Departures from Shumlin’s leadership team have accelerated since the governor announced in June he would not seek re-election.
Fourteen agency and department heads have left the administration in a little more than a year.
