Detroit Chief Financial Officer Dave Massaron will take the helm of Michigan’s budget office at the start of the New Year as state Budget Director Chris Kolb departs for an administrative position at the University of Michigan.
“He is uniquely qualified to serve as budget director for the state, where I am confident he will work around the clock to build a balanced budget that supports our recovery from the pandemic by investing in our public schools, public health and safety, and economic opportunity,” Gov. Gretchen Whitmer said in a statement. The appointment is effective Jan. 4.
Massaron, a lawyer who was a principal at Miller Canfield before joining Detroit Mayor Mike Duggan’s administration in 2014, held several top roles including chief operating officer and senior counsel before being tapped on an interim and then permanent basis to serve as CFO in early 2019.
Massaron replaced John Hill, who was hired by the city’s then emergency manager Kevyn Orr to help steer the city took the post while the city was in Chapter 9 and remained after the city exited bankruptcy in late 2014.
During Massaron’s tenure, the city continued to operate on balanced budgets, win upgrades to higher speculative grade bond ratings in pursuit of an investment grade, and built up a special fund to help cover the resumption of pension payments in the coming years.
The city managed through a COVID-19 pandemic revenue hit of $400 million with cuts, reserves, and other measures that protected it from a return to state oversight and the city won voter approval for up to $250 million of bond borrowing for blight removal in November.
“Dave leaves the city in a strong financial position, which has made it possible for us to sell up to $250 million in bonds to transform more of our neighborhoods through Proposal N,” Duggan said in a statement.
Massaron called it the “greatest honor” to have worked in the Duggan administration and said he was “eager to work with the governor’s team and the state legislature to get a bipartisan budget passed for the 2021-2022 fiscal year.”
Massaron’s departure comes as the city is preparing to sell $175 million of general obligation debt next month authorized in November's bond measure.
Detroit recently named a
The deal remains on track with other members of the city’s finance team in place to manage it.
They include John Naglick Jr., chief deputy CFO and finance director since 2013; Katie Hammer, chief deputy CFO and policy and administration director; Christa McLellan, deputy CFO and treasurer; Tanya Stoudemire, deputy CFO and budget director; and Valeri Agolli, debt manager.
Kolb is leaving the state budget office to become vice president of government relations at the University of Michigan. Whitmer tapped Kolb for the budget position and Rachel Eubanks for state treasurer in December 2018 as she prepared to take office early in 2019.
Kolb previously was president of the Michigan Environmental Council and served as co-chair of the Flint Water Advisory Task Force, which investigated the city’s drinking water crisis. From 2001 to 2006, Kolb served in the state House of Representatives. Kolb’s five-year university appointment is effective Jan. 19.
At the helm of the state’s budget office, Massaron will lead the ongoing management through the pandemic and construction of a budget for the fiscal year that begins Oct. 1, 2021. Michigan’s revised August forecast softened the near-term COVID-19 blow paving an easier road for an
The state operates on a nearly $63 billion all-funds budget including $45 billion for general operations and $17.7 billion for education. After dipping into reserves for $350 million to cover a fiscal 2020 hole, the state has about $850 million in its rainy day fund.
S&P Global Ratings recently moved its outlook on Michigan’s AA rating to negative from stable. Fitch Ratings rates the state AA with a stable outlook. Moody’s Investors Service rates it Aa1 with a stable outlook.
