By Mike DeNardo

PHILADELPHIA (CBS) — The demoted budget director for the School District of Philadelphia is leaving his job at the end of the month.

Michael Masch, the school district’s former budget director, is out, effective May 31st.

School district spokesman Fernando Gallard says Masch is leaving “by mutual agreement” with the district.

It was on Masch’s watch that the district budget shortfalls ballooned to hundreds of millions of dollars last year, when federal stimulus money dried up.

In January, Masch was demoted as the School Reform Commission brought in Tom Knudsen to be the acting superintendent and “chief recovery officer,” in charge of district finances.

Word of Masch’s departure emerged at a community budget meeting in West Philadelphia this week.

Gallard says Masch will get unused personal leave and sick payments, but no other severance.