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WASHINGTON (Reuters) – Kansas Governor Kathleen Sebelius has emerged as President Barack Obama's top choice for health secretary, a key post in helping to overhaul the U.S. healthcare system, the New York Times reported on Wednesday, citing Obama advisers. Obama's first pick for the job of secretary of health and human services, former Senate Democratic leader Tom Daschle, withdrew because of personal tax issues in a setback for the administration. Sebelius, a moderate Democrat from a mostly Republican state and an Obama ally, has often been mentioned as a possibility for his Cabinet. She was considered a leading candidate to be Obama's vice presidential running mate last summer. In December she said she was not interested in serving in the Obama administration because of her state's budget woes.
TOPEKA - Income tax refunds and state employee paychecks could be late after Republican leaders and the Democratic governor clashed Monday over how to solve a cash-flow problem. Payments to Medicaid providers and schools also could be delayed. "We are out of cash, in essence," state budget director Duane Goossen said.