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WASHINGTON – Kansas Gov. Kathleen Sebelius is President Barack Obama's choice for secretary of health and human services, a White House source said Saturday. The source, who was not authorized to speak on the record, said Obama will formally announce the nomination on Monday. Sebelius, 60, was an early Obama supporter. She picked his presidential campaign over that of Hillary Rodham Clinton, now the secretary of state. Sebelius worked tirelessly for Obama's bid and was a top surrogate to women's groups. Obama's first choice for HHS, former Senate Majority Leader Tom Daschle, withdrew after disclosing he had failed to pay $140,000 in taxes and interest.
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. The move places state taxpayers, workers and schoolchildren in the middle of a political battle over budget cuts. Republicans, who hold majorities in both chambers, blocked Gov. Kathleen Sebelius’ proposal to borrow $225 million from healthy state funds to cover shortages in accounts used to meet the state’s payroll and issue tax refunds. GOP leaders said they won’t approve the IOUs until Sebelius either cuts the current budget herself or signs the bill they passed last week slashing $326 million — including $32 million for education — to balance the budget. Republican leaders said they had no choice, that by law the state can’t borrow any more money from itself.