The governor-elect says Espich's expertise in finance legislation and the state budget will benefit the adminstration.
Several key members of the legislature are retiring this year, including two from the House Ways and Means Committee.
Uniondale Representative Jeff Espich announced Friday he will not run for re-election.
Experts say competition from Illinois and Ohio may force Indiana to reconsider its casino gaming revenue stream.
The money comes from corporate tax collections found by the state last year after a software error failed to deposit it into the state’s general fund.
Legislators continue work on the budget as the 2011 session winds down.