HARRISBURG -- Pittsburgh native Jack Wagner is headed for a second term as the state's fiscal watchdog.

The incumbent auditor general defeated Republican challenger Chet Beiler with a commanding lead.

"I'm honored to have received the resounding support of the people of Pennsylvania and I am honored to hold this very important position in state government, especially now during such tough economic times," he said last night.

Mr. Wagner, a Democrat who served on Pittsburgh City Council and in the state Senate, said he plans to use the next four years to expand on changes he made during his first term. He expects to follow up on performance audits to ensure compliance with recommendations and will keep close tabs on the Pennsylvania Higher Education Assistance Agency, where he found hundreds of thousands of dollars were being spent on luxuries such as golf outings and spa treatments.

Mr. Wagner, 60, of Beechview, counts the PHEAA audit among his biggest accomplishments as auditor general. Others include efforts to improve compliance with sex-offender registry requirements and a study of lifeguards' effectiveness in preventing drownings in state parks.

"When an incumbent runs for re-election, it's a referendum on performance. The four years I have been in office, I have been aggressive. I have been tough on the issues and done audits we had never done before," he said from his election night party at the IBEW Local 5 hall on the South Side. "I have taken on tough issues the public wants me to take on, and I'm very appreciative of the fact that they see that and they know it."

Mr. Wagner is a Vietnam War veteran and has a degree in safety management from Indiana University of Pennsylvania. Before entering public office, he served as a payroll clerk and a fleet-safety expert for an insurance company.

Mr. Beiler, 45, is a Lancaster County businessman whose main enterprise is as an Amish gazebo retailer. He could not immediately be reached last night.

Libertarian Betsy Summer also ran.

The auditor general is paid $141,565 per year to ensure all of the commonwealth's money is handled legally and properly. The office conducts financial and performance audits and reviews complaints of government waste, fraud and abuse.