Kansas Gov. Kathleen Sebelius remains a finalist for secretary of health and human services, although President Barack Obama has not selected his nominee.

Speculation continues to swirl over Kansas Gov. Kathleen Sebelius joining President Barack Obama's cabinet. (Photo: Getty Images)

    A new round of speculation about Sebelius' prospects arose Wednesday with a report in The New York Times that Obama had already "settled" on Sebelius.

    But a White House spokesman told The Kansas City Star that "no decision has been made."

    Sebelius, 60, has been mentioned for weeks as a leading candidate for a Cabinet job that would be closely involved in an expected attempt to enact sweeping reforms in health coverage.

    Sebelius could not be reached for comment Wednesday night, but her spokeswoman, Beth Martino, said she knew nothing about the renewed speculation and had not spoken to Sebelius about it.

    "As far as I know, she is really focused, as is evidenced, on the budget and the economy," Martino said. "She's the governor, that's her job, and that's what she's doing."

    If Sebelius were to step down, Lt. Gov. Mark Parkinson of Olathe would become governor.

    Obama's first pick for the job was former Senate Democratic leader Tom Daschle, who withdrew over his failure to pay $128,000 in taxes until he was nominated.

    Other names mentioned in recent days for the health and human services post were John Podesta, President Bill Clinton's chief of staff; Jacob Lew, a former deputy secretary of state for management and a former director of the Office of Management and Budget; and former Oregon Gov. John Kitzhaber.

    The Associated Press reported earlier this week that Podesta — who oversaw Obama's transition and was seen by some analysts as the person most ready to handle the difficult job — had told co-workers and friends that he would stay at his think tank, the Center for American Progress.

    Sebelius would bring several attributes to the job, supporters said. As a Democrat, she pulled off the feat of twice winning election as governor in a state dominated by Republicans. She also pushed several times to significantly expand health-care coverage in Kansas, using an increase in the cigarette tax as the funding mechanism. The Republican-controlled Legislature, however, rejected those moves.

    Sebelius also is a former two-term Kansas insurance commissioner who is intimately familiar with that industry. She also has close ties to Obama, whom she endorsed early in the 2008 presidential campaign.

    Kansas Senate Majority Leader Derek Schmidt, an Independence Republican, said Wednesday he was not surprised to hear Sebelius was a top candidate.

    "It looks promising," he said. "She's clearly interested. The president clearly likes her," he said. "If the stars are ever going to align, this looks like the time."

    Schmidt said the state could benefit from having a Kansan in the administration.

    "I think it would be good for Kansas to have a member of the president's Cabinet," he said.

    Observers point to only one major drawback: Sebelius is not a Capitol Hill veteran and hasn't worked closely with some key members of Congress.

    "She's got no D.C. experience," said Joe Aistrup, a Kansas State University political scientist. "That's a big one, especially for HHS, which has a number of major issues, including the possibility of national health insurance."

    Sebelius last year withdrew from consideration for other posts in Obama's Cabinet, saying she wanted to focus on state spending, "given the extraordinary budget challenges facing our state."

    She remains in the midst of that challenge, having just finished wrangling over the 2009 budget and facing decisions over steep cuts for the fiscal year that starts in July.

    In December, Sebelius said that joining the Obama team would be exciting, although "my service to the citizens who elected me is my top priority in these difficult times."

    Exactly when Obama will announce his nominee was unclear Wednesday, although Washington insiders said they expected an announcement within a week.

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