Gov. Arnold Schwarzenegger Thursday appointed Tom Campbell to lead the Department of Finance. Campbell will replace Donna Arduin, who resigned from the position in October.

The Senate must approve Campbell before he can take office. Representatives from the governor’s office believe that could occur as early as Dec. 1.

“Tom is a brilliant economist with intricate, first-hand knowledge of public and fiscal policy who shares my commitment to getting California’s fiscal house in order,” Schwarzenegger said. “He is a tremendous addition to my team, and will be an invaluable advocate working to streamline government, balance the books and create a vibrant economic climate in the State.”

The appointment has pleased Republican leadership in the senate.

“I think it is an outstanding choice,” said Senator Tom McClintock, R-Thousand Oaks. “[Campbell] is a detail guy who can see the big picture as well.”

McClintock, however, believes the position will be testing.

“[Campbell] will have his work cut out for him,” he said. “He will have to confront the same problem Donna Arduin faced which was you can’t fund socially liberal programs with conservative financing.”

McClintock said finding a bridge between those two philosophies would be Campbell’s “ultimate challenge.”

In addition to balancing the fiscal demands of California’s different political parties, Campbell’s main responsibilities would include directing the state agency to ensure fiscal integrity and assisting Gov. Schwarzenegger in developing the state’s annual budget. Arduin was responsible for designing last year’s $150 billion budget. The core of Arduin’s plan concentrated on borrowing funds through state bonds while keeping taxes low.

With one budget cycle behind him, Schwarzenegger believes Campbell is the man to direct the future of California’s economy.

“I am honored Gov. Schwarzenegger has asked me to work alongside him as he continues to bring economic recovery to California,” Campbell said. “I look forward to the work of crafting a responsible state budget that stimulates growth and creates jobs—getting more jobs for more Californians is our top priority.”

A former California State senator and U.S. congressman, Campbell, 52, holds a doctorate in economics from the University of Chicago and a juris doctorate degree from Harvard Law School.

Campbell currently works as the Bank of America dean and professor of business at the Haas School of Business, at the University of California, Berkeley. Prior to his 2002 posting in Berkeley, Campbell spent 19 years as a law professor at Stanford University.

In addition to his work at the college level, Campbell has served on a number of commissions, including the Board of Editors of the Harvard Law Review; the chairman of the World Affairs Council of Northern California; a member of the Governor’s Council of Economic Advisers; and as director of the American Institute of Certified Public Accountants.

Campbell is a registered Republican and lives with his wife Susanne in San Jose.