LANSING – In a surprise move on Tuesday, Governor Rick Snyder announced that Nick Khouri, a vice president at DTE Energy and a former chief deputy treasurer, will become Michigan’s new treasurer.

Khouri succeeds current Treasurer Kevin Clinton who is stepping down from the post he took in 2013 to rejoin the private sector, somewhere in the insurance and financial sector, although exactly where he will go has not been announced.

Khouri, 57, of Plymouth, told reporters he would begin his duties as treasurer on April 20, and would spend the first 30 days getting to know the personnel, talking with lawmakers and getting a new familiarity with the department before making any decisions on changes.

In his announcement, Snyder said Khouri’s “expertise in tax policies and financial issues will be a great asset as we continue working to reinvent state government.”

And Khouri’s former boss, former Treasurer Doug Roberts, said Khouri would do a “terrific job” for the state. “The people of Michigan will be very well served” by Khouri, Roberts said. Khouri was chief deputy treasurer under Roberts during the administration of former Governor John Engler and chief economist for the Senate Fiscal Agency while Roberts directed that agency.

Khouri left the state to work for Public Sector Consultants, a lobbying group, and then joined DTE Energy as treasurer where he is now a vice-president.

As treasurer, Khouri will work alongside Budget Director John Roberts, who is Roberts’ son.

Clinton had indicated to the administration that he wanted to leave after Snyder’s first term was completed. Before taking over Treasury, which had undergone a number of controversies in the final months of former Treasurer Andy Dillon’s tenure, he was director of the Department of Insurance and Financial Services.

Asked why he had agreed to come back to state service, Khouri said, “I have always loved public policy.”

He also praised Snyder for being willing to take on big issues.

And one of his goals will be for the state to boast it has the best operating Treasury Department in the U.S., he said.

He decline to get into specific policy questions – when asked about administering the state’s collection of sales tax for Internet purchases – but said it terms of overall principles he liked tax systems to be efficient, fair and simple.

“I’m not a real fan of using taxes to encourage or discourage behavior,” Khouri said. Asked about Michigan’s current tax structure, he said it was better than before Snyder had taken office.

“I was never a fan of the MBT or the SBT before it,” he said. “The (Corporate Income Tax) has an advantage in terms of pure simplicity.”

Michigan’s personal income tax is “relatively simple compared to other states,” Khouri said, but it could still be improved.

Michigan will start collecting Detroit’s income tax in 2016, and Khouri said he believed the state should look at offering to the other cities – more than 20 – that levy an income tax to collect their tax as well. In fact, he said he once advised Engler 25 years ago that the state should collect city income taxes for the local governments.

Khouri’s appointment was criticized by Michigan Democratic Party Chair Lon Johnson, saying because Khouri is a registered lobbyist his appointment would not create confidence in the department.

Khouri said he expected to hold the post through the end of Snyder’s tenure. “At my age, I don’t mind turning out the lights,” he said.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com