To serve both his objectives of growth and careful spending, Obama said he hoped some of the funds spent to stimulate the economy could also lay the groundwork for longer-term economic health.

As an example, he said, "a smart job of investing in health care modernization" could help in both the short term and the longer run.

Some of the new spending will be more traditional, though, and Obama told one questioner he hoped to work with state and local governments to complete road and other projects already under way.

The president-elect's office also announced he intends to meet next Tuesday in Philadelphia with the nation's governors. As the economy sours, many states are being hard hit, and inevitably will turn to Washington for help meeting health care costs for the poor as well as for other needs.

Obama's pledge to work with Republicans reflected his campaign rhetoric. His chief of staff, Rahm Emanuel, met last week with leading GOP lawmakers, and Obama has pledged to have at least one member of the opposition party in his Cabinet.

"I think what the American people want more than anything is just commonsense, smart government," he said.

"They don't want ideology, they don't want bickering, they don't want sniping. They want action and they want effectiveness."

In addition to Orszag, Obama named Robert Nabors as deputy director of the Office of Management and Budget. Both jobs are subject to Senate confirmation.

Later in the day, Obama named Alyssa Mastromonaco to be his White House director of scheduling and advance, a task similar to the one she had in his campaign.

On Monday, the president-elect tapped New York Federal Reserve President Tim Geithner as his treasury secretary.

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David Espo reported from Washington.