President-elect Barack Obama presents Secretary of State-designate Hillary Rodham Clinton, U.S. senator from New York, and James Jones, a retired Marine Corps general and Obama national security adviser-designate.

Pablo Martinez Monsivais / the associated press

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PHOENIX — President-elect Barack Obama named Arizona Gov. Janet Napolitano as his secretary of Homeland Security Monday, setting the course for a significant political shift in Arizona over the next two months.

Napolitano, who appeared alongside Obama at a Chicago news conference, plans to remain governor until she is confirmed for the post by the U.S. Senate, at which time she will resign.

In the interim, Napolitano expects to preside over a special legislative session to try to solve a growing budget shortfall. She'll also submit a budget proposal for next year and deliver a State of the State address next month even though she won't be in office to execute those priorities.

Once she is confirmed, possibly by late January, Napolitano, a second-term Democrat, will be replaced by Republican Secretary of State Jan Brewer, handing the GOP control of both the executive and legislative branches of state government for the first time in six years.

That has some Democrats expressing mixed feelings about Napolitano's departure.

The announcement was the climax of several weeks of speculation — speculation that Napolitano constantly avoided commenting on. Even before Obama was elected in November, talk about Napolitano, an early and active supporter of Obama, fueled talk that she might be a Cabinet pick.

But until Monday's announcement, Napolitano would not comment on the possibility of her leaving the state for one of the most high-profile jobs in the presidential Cabinet.

At an awkward media event at the state Capitol, once the governor arrived back in Arizona from Chicago, Napolitano and Brewer appeared side-by-side to certify the results of the November election — a prearranged meeting that ironically landed on the same day as Obama's announcement.

It was Napolitano's appointment that dominated the event though, as dozens of reporters and TV cameras crammed into a conference room in Brewer's office.

"I have a deep feeling that when the president asks someone to serve, one is called upon to serve, particularly in this department which has such a direct connection with Arizona and so many of the issues we face here, but also very, very broad national responsibilities as well," Napolitano said.

She said that taking the nomination was a "difficult decision" and one she and Obama discussed for "several weeks." Before Monday, Napolitano always said no offer was on the table.

"In the end, my view was one of deep devotion to Arizona but also a call to service and a call to service for our country," she said. "While I did not campaign for the job, when he called and tendered it to me it was certainly something that I had to take seriously and obviously I did."

But she said she'd press on with the state's business because "I'm not the secretary of homeland security until I'm confirmed."

Brewer has had harsh words for Napolitano and Obama previously, but Monday she struck a civil and congratulatory tone.

"The nomination is certainly deserved for you and certainly an honor for the state of Arizona," Brewer said, seated next to Napolitano. "I wish you Godspeed in your stewardship of this vital agency."

Brewer and Napolitano, who have had a chilly relationship over the past six years and agree on little, pledged to cooperate during what could be a complicated transition, given its timing and the state's budget shortfall.

But Brewer, a former Glendale legislator and Maricopa County supervisor who according to public polls is largely unknown to most Arizonans, took only three questions and provided no details about her plans for the state. And she didn't say whether she would run for governor in 2010.

At Obama's Chicago news conference, where he unveiled his national security team, the president-elect highlighted the governor's roles as a U.S. attorney and later as the state's attorney general, providing experience and executive skills to manage the vulnerable department, he said.

"She has spent her career protecting people," Obama said.

"She understands the needs for a Department of Homeland Security that has the capacity to help prevent terrorist attacks and respond to catastrophes, be it man-made or natural," Obama added.

And Obama hinted at the challenges confronting a department that has been under scrutiny in recent years.

"Janet assumes this critical role having learned the lessons — some of them painful — of the last several years, from 9/11 to Katrina," Obama said. "She insists on competence and accountability."

For her part, Napolitano said, she plans to work "carefully and thoroughly so that our domestic response to all hazards is fast, sound, levelheaded and effective."

"To achieve this high level of performance, it will be my job and the job of this team to hold ourselves and our agencies accountable, to coordinate fully across the spectrum of government agencies and to ensure that we work hand-in-hand with state and local governments to share information, secure our borders and keep our country safe," she said in Chicago.

Napolitano, who appeared beside Hillary Rodham Clinton, Obama's pick for secretary of state, added, "I would be remiss if I did not also thank the wonderful people of Arizona. Like Hillary, it is difficult to leave one job for another, but one must go where one can best serve."

Napolitano's looming departure is a serious blow to state Democrats, who lost seats in both chambers of the Legislature last month and have counted on Napolitano to veto Republican bills. Napolitano has used that authority more than any other governor in the state's history.

"I feel like I have whiplash," said state Rep. Steve Farley, a Tucson Democrat who counted on Napolitano's staying. Farley reflected the sentiments of many state Democrats: Napolitano is surely qualified for the Cabinet post, but her leaving presents a challenge.

While any criticism is muted, there is genuine disappointment in her decision, even some fear among Democrats about what lies ahead.

"It was inevitable," said state Sen. Ben Miranda, a Phoenix Democrat. "There's no question that when you have one party in control of the House and the Senate and the governorship that . . . it certainly gives one party a lot of power."

Napolitano drew unexpected praise from Republicans. Not only was Brewer positive about the appointment, but Arizona Republican Party Chairman Randy Pullen sent out a congratulatory statement.

Meanwhile, in the midst of Democratic scrutiny of Brewer's politics, state Rep. Jonathan Paton, a Tucson Republican, said "Jan has kind of gotten a deal.

"There's been a lot of piling on," he said. "I think she's going to do fine."

And even Miranda said, "There's something about being in the governorship that balances people out. And I think Jan Brewer brings to that office great possibilities."

If confirmed, Napolitano will oversee the third-largest Cabinet department, one with more than 200,000 employees.

The department was created by Congress following the 2001 terrorist attacks, and its umbrella falls over various agencies including the Federal Emergency Management Agency (FEMA), the U.S. Coast Guard and U.S. Immigration and Customs Enforcement.

The department has been dogged both by reports of wasteful spending and its handling of Hurricane Katrina in 2005.

Napolitano, however, refused to say what changes she intends to bring to the agency.

"I don't think it's appropriate for me to answer those questions right now," she said. "There'll be plenty of time to talk about that."

The governor said she wants to meet first with federal lawmakers who sit on committees that have oversight of her new agency.

Napolitano leaves the state as it faces a $1.2 billion shortfall in the current year, with an even larger one expected next year.