PROVIDENCE, R.I. -- Gary Sasse, Governor Carcieri's director of administration, has served notice of his resignation, effective March 1.

When rumors of his imminent departure swirled last week, Sasse assured reporters he would be at the unveiling of Carcieri's budget Tuesday - and he was.

But the administration has now confirmed his resignation as both administration director and head of the state's Department of Revenue.

Sasse headed the business-financed Rhode Island Public Expenditure Council for close to three decades before he was recruited by Carcieri in late 2007 to replace Beverly Najarian as administration director.

At the time of his appointment, Carcieri said: "Gary's experience, knowledge and dedication will be a tremendous asset as we try to deal with the state's looming budget shortfall," and "like me, Gary is devoted to making sure that state government is operated on a sustainable basis, and that it is a benefit, not a burden, to Rhode Island taxpayers."

Carcieri, in his last year as governor, is expected to name a replacement for Sasse in the coming days.

"Since joining my Administration, Gary has served a critical role in helping to navigate the state though this financial crisis," Carcieri said. "At the Department of Revenue, Gary implemented new policies to improve reporting and analysis, enhance revenue collections and successfully found operating efficiencies and cost savings across all divisions, while leading the state through the BLB bankruptcy proceedings and the modernization of the DMV.

"At Administration, Gary successfully negotiated the two-year pay reduction with all state employee unions, brought greater efficiencies throughout all state agencies, and helped craft balanced and responsible budgets. I extend my gratitude to Gary for his service to Rhode Island, and wish him the very best."