AUGUSTA – Gov. John Baldacci is expected to announce that a veteran budget official called back into state service four months ago to oversee finances at the Maine Department of Human Services is his choice to head a new superdepartment that will combine DHS with the state’s mental health department.

The nomination of John Nicholas, who served as Maine’s state budget officer from 1992 to 2002 and is the acting DHS commissioner, would be subject to legislative review and Senate confirmation.

Notifications were being made Wednesday and an announcement of the nomination is due today.

Baldacci spokesman Lee Umphrey stopped short of acknowledging Nicholas’ status but said: “Jack Nicholas has done a great job as deputy commissioner and acting commissioner. Jack, if selected, would do an equally great job as commissioner.”

Nicholas worked as chief financial officer for Catholic Charities Maine before rejoining state government.

From 1986 to 1989, Nicholas served as director of finance and administration for the Maine Technical College System. He first went to work for the state in 1973 as an employment counselor for the Maine personnel department.

The Human Services Department has been without a permanent commissioner since Kevin Concannon, who held the post throughout the administration of Gov. Angus King and who had served in Gov. Joseph Brennan’s Cabinet before that, resigned a year ago.

Upon Concannon’s departure, Peter Walsh, a deputy human services commissioner, took over as acting commissioner. Nicholas succeeded Walsh this month.

The Department of Behavioral and Developmental Services, which administers Maine’s mental health programs, is headed by acting Commissioner Sabra Burdick. Burdick succeeded Lynn Duby, a King administration holdover whose resignation was announced last February.

Baldacci declared his goal of bringing the two departments together in his inaugural address and already has persuaded lawmakers to book merger-related savings of nearly $6 million for fiscal 2005, which begins July 1.

Recommendations from a reorganization advisory council include a call for easing access to the numerous programs run and overseen by the two departments and for simplifications in administration, which could include standardizing contracting, licensing and accreditation.

Also recommended was the establishment of a Bureau of Children and Families.

The two existing departments administer hundreds of contracts worth an estimated $450 million. The number of positions authorized for the Department of Behavioral and Developmental Services is 1,350, while for the Human Services Department the position count is 2,620.

In all, according to an analysis, the two departments spend more than $2 billion on programs, services and financial assistance and maintain a network of about 600 local community service providers.

Baldacci’s merger legislation is expected to be unveiled today.