Minnesota Budget Commissioner Jim Schowalter is stepping down from his post and handing the reins to one of his deputies, Gov. Tim Walz announced Wednesday.

Schowalter served as commissioner of Minnesota Management and Budget under DFL Gov. Mark Dayton and was appointed to the role again by Walz in September 2020. Between his two appointments spanning seven years, Schowalter has been Minnesota's longest-serving budget commissioner, helping the state recover from budget deficits and achieve historic surpluses.

Schowalter also helped Minnesota regain a AAA bond rating, Walz's announcement noted.

"At the end of this legislative session, we had done so much that it forced me to sit back and look at what is next," Schowalter said in an interview. "I think it's a great time for a new leader to take over our organization and decided this is the time."

In a statement, Walz praised Schowalter's "steady leadership" and "tireless service," which he said helped stabilize the state's budget.

Schowalter's last day will be Aug. 14.

Walz has selected Erin Campbell, the agency's deputy commissioner, to take over the top job starting Aug. 15.

Campbell has served as deputy commissioner since July 2022, leading efforts to diversify the workforce and improve employee experiences and retention. She's spent nearly 20 years working for the state in roles ranging from assistant commissioner at the Department of Administration to deputy chief of staff for former Gov. Dayton.

"There is critical work ahead to retain and hire the workforce of the future, to ensure the state remains on strong fiscal footing, and to support our colleagues in state agencies as they implement recently enacted legislation — I am excited to get started," Campbell said in a statement.

Schowalter said he is not retiring but wants to take personal time before figuring out what work he'll seek next.

"I want to take some time and do some travel, do some work in my community, be around the house," Schowalter said. "I'm not sure what's next, but I really will cherish the relationships and learning I did in this role."