WASHINGTON (AP) -- Virginia Gov. Tim Kaine, who last year helped deliver his state to the Democratic Party in a presidential election for the first time in more than 40 years, has been selected by President-elect Barack Obama to serve as the next chairman of the Democratic National Committee.

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Kaine, once a contender to be Obama's running mate, will remain in his current job and work part time at the DNC until 2010, when his term as governor is up and he can take over the party chairmanship full time. Virginia law prohibits an incumbent governor from running for re-election.

Kaine sees his new job as a spare-time role done largely by computer and phone to start.

Kaine said Monday he took the DNC chairman's post after strong persuasion from President-elect Obama and only after Obama agreed to let him do it part time the first year.

When asked how he will manage the state through a fiscal crisis while serving as Obama's chief partisan voice and top party fundraiser, Kaine said he saw it as "an electronic gig."

Kaine last fall ruled out cabinet and other top posts within the Obama administration. He said Obama made a harder sell the week before Christmas.

Virginia faces at least a $3 billion budget gap during the final year of the one term Kaine is limited to serving.

Former Democratic state senator Sonny Stallings told 13News Monday he's confident Kaine can handle two jobs at once.

"It is a lot to juggle, but I think Tim Kaine is up to the job. As you know, the Virginia legislature only meet two months a year and I'm sure his full attention will be the legislature these first two months of 2009," Forbes said.

Former Republican delegate Leo Wardrup told 13News he's not so sure.

"We've got a one-term governor. He's got four years, so effectively, our governor is forfeiting 25 percent of his term during a period of time in which he has a budget shortfall of arguably $3 to 3.5 billion for the new budget, plus another million or billion in the current budget which expires 30 June. I think he's short changing the citizens of Virginia," he stated.

Wardrup also said he believes Jim Gilmore had a hard time serving as governor and chairman of the Republican National Committee.

Current DNC chairman Howard Dean plans to step down Jan. 21, the day after Obama's inauguration.

Obama has also chosen Jennifer O'Malley Dillon, who directed his successful campaign battleground state strategy, to run day-to-day operations at the party as executive director.

With Democrats controlling the White House and Congress, the new DNC chairman will be responsible for reinforcing the White House message, preparing for the 2010 midterm elections and raising money.

The Republican National Committee is set to decide in the coming weeks between six candidates for chairman, including current head Mike Duncan, who is running for re-election. The new RNC head will be expected to take the lead in responding to the Democratic administration as well as rebuilding a party left in tatters after sweeping defeats in two straight elections.

Kaine campaigned vigorously for Obama in Virginia during his presidential run. The day after the election, Kaine said Obama's triumph in the state -- the first for a Democrat seeking the presidency in 44 years -- was the apex of everything he had worked for since law school.

Kaine was mentioned as a possible running mate after Obama clinched the Democratic presidential nomination; Delaware Sen. Joe Biden eventually won that spot. After the election, Kaine was mentioned as a potential choice to serve as education secretary; Obama instead chose Chicago schools superintendent Arne Duncan. In November, Kaine said he wasn't interested in the DNC job.

He won election to the Virginia governor's office in 2005. In January 2006, he was chosen to deliver the Democratic response to President George W. Bush's State of the Union address.

A former DNC chairman, Terry McAuliffe, said Saturday he intends to run for governor of Virginia. In a video posted on his Web site, McAuliffe said he will make his intention to run official on Wednesday as part of a weeklong campaign kickoff.

(Copyright 2009 by The Associated Press.  All Rights Reserved.)