Kansas Gov. Kathleen Sebelius, who was a finalist for vice president last summer and under consideration for several Cabinet posGov. Kathleen SebeliusGov. Kathleen Sebeliusts in a Barack Obama administration, today withdrew her name from the selection process.

The surprise move ends intense political speculation that Sebelius was on her way to Washington and that Lt. Gov. Mark Parkinson was about to become the state's new chief executive.

In a brief statement e-mailed to reporters at 4 p.m. today, Sebelius cited the state's worsening budget situation in the wake of the nation's economic crisis as her reason for staying.

“Given the extraordinary budget challenges facing our state, and my commitment to continuing the progress we’ve made in Kansas, I believe it is important to continue my service as governor of the great state of Kansas; a job that I love and have been honored to hold.  The possibility of joining President-elect Obama’s team is exciting and compelling, but my service to the citizens who elected me is my top priority in these difficult times.

“The good news for Kansans is that we will soon have a partner in the White House working with us as we face our unprecedented economic challenges.”

Sebelius' abrupt withdrawal even as the FBI reportedly was conducting background checks will surely fuel speculation that the governor did not get the Cabinet post she wanted or was rejected for the Cabinet altogether.

The governor, who endorsed Obama early in the Democratic nomination process, was not available Saturday for questions.

Even today, national news organizations were still mentioning Sebelius, 60, as a possible secretary of energy or labor. Sources close to the governor had said she was interested in joining the Obama team, and sources close to Obama said the president-elect held Sebelius in high regard.

As a consolation, Sebelius will now face the challenge of wrestling with a pending budget deficit of tens of millions of dollars and making cuts that will be unpopular for many.