Gov. Arnold Schwarzenegger said he won't listen to "losers'' in the Democrat-controlled Legislature who advocate raising taxes to close a looming budget deficit as he announced that former South Bay Republican Rep. Tom Campbell will head his finance department.

Campbell, a social moderate, will take a leave from his current job as the dean of the Haas School of Business at UC Berkeley to join the administration, replacing Donna Arduin, who left after just a year.

The director of finance plays a pivotal role in shaping the state's budget as the state continues to face large deficits, perhaps as much as a $10 billion shortfall next year.

Schwarzenegger praised Campbell as "the most brilliant person in California" at a press conference announcing his selection.

"What I like most about Tom is that he thinks the same way I do," the governor said. "He is going to be very, very helpful to continue to put California on the road to recovery."

When asked if he would consider tax-increase proposals put forward by Democrats to help balance the budget, Schwarzenegger said, "Why would I listen to losers? Let's be honest -- they have lost every single ballot in the Bay Area."

"Why would we go and follow a losing formula? It doesn't make any sense," he added. A spokeswoman for the governor said the governor was referring to the ballot measures as losers, not the lawmakers.