ASSEMBLY DEMOCRATS JUBILANT.

Byline: Rick Orlov Daily News Staff Writer

Democrats on Wednesday celebrated their recapture of the state Assembly, calling it a ``course correction'' by voters concerned that the GOP revolution two years ago pushed the statehouse too far to the right.

Republican Gov. Pete Wilson, conceding the shift in power could complicate the final two years of his term, appealed to Democratic lawmakers to work with him rather than against him.

But in an already fractious statehouse, it may be difficult for either side to put away its partisan armor.

``If (Wilson) comes in willing to cooperate, we will be there to work with him,'' said Assembly Democratic leader Richard Katz. ``But if he comes in pushing wedge issues like he has in the past, he will find opposition.''

Katz, who engineered the Democratic takeover, actually won't be there himself - he's being ousted by term limits. But he'll leave behind a Democratic majority that appears to be shaping up as 44-36 in the Assembly.

The Democrats knocked off one GOP incumbent and picked up four open seats held by Republicans.

Four to seven races remained too close to call, but even Speaker Curt Pringle, R-Garden Grove, conceded that Republicans would not win enough of those seats when all votes are counted to keep their majority.

``You don't have to be a surfer to know you've been hit by a big wave,'' lamented Pringle. ``This was not a good year for Republican candidates.''

Democrats now must decide who will be the new speaker. The last Democratic speaker, Willie Brown Jr., is now mayor of San Francisco, and Katz is in his final term.

``I think there are at least 41 and maybe 44 candidates for speaker,'' Katz said with a laugh.

On the Senate side, already in Democratic control, the majority party solidified its hold, ending up with a likely 24-15 majority, with one independent.

That would be a two-seat gain, although two races were still too close to call Wednesday.

``California voters have made a course correction,'' said Senate President Pro Tem Bill Lockyer, D-Hayward. ``Two years ago, they a little two eagerly embraced the Gingrich agenda. I think during the last two years, they realized there were excesses associated with that philosophy.''

Wilson, pointing to votes that were widely viewed as pro-business on statewide propositions, insisted that the election was an endorsement of his economic plans.

``If anything, the results were a mandate to go ahead with the ideas that have come forward in recent years rather than the failed policies of the past,'' he said.

``The people have spoken clearly and wisely with respect to the California propositions. Now is the time to focus on the work to be done in Sacramento.

``Regardless of the makeup of the Legislature, I think the voters sent a powerful message that neither party can ignore. If you look up and down the ballot, I think what you will see is that Californians cast their vote to preserve the newly revived competitiveness in the state.''

In particular, Wilson cited voter support for measures on an overall water policy, for controls on lawyers and rejecting an increase in personal property taxes.

And he urged Democrats to work with him on key initiatives.

``I specifically invite them to work with me on reforming education to reduce class sizes at the early grades as much as it needs to be done,'' Wilson said. ``Despite our differences, everyone deserves equal access to opportunity. I look forward to working with them.''

Assembly Democrats are scheduled to meet in a caucus today to begin determining their new leaders, including the speaker. Several local officials, including Assemblywoman Sheila Kuehl, D-Encino, and Assemblyman Wally Knox, D-Los Angeles, were mentioned as possible leadership candidates.

``All that is up in the air,'' Kuehl said. ``This is not something you really actively seek. It's more along the lines of working with people over the year and developing trust and support.''

Kuehl said she believed Democratic lawmakers can work with Wilson.

``I think there's a lot of common ground there. Even though the governor involved himself in Assembly and Senate races, I don't believe there's any real rancor,'' Kuehl said.

``From what I see in our Democratic majority in the Assembly, we are really focused on rolling up our sleeves and doing what we said we would.''

Lockyer, who also was actively involved in the Democratic campaigns, said he believes the Senate can work with Wilson as well.

``We have an obligation to serve all our constituents, no matter if they are Democratic, Republican or independent,'' Lockyer said.

``Virtually everything that is serious on what we do needs a two-thirds vote. We don't have that in either house, so we will have to work with Republicans and the governor if we are to get anything accomplished.''

CAPTION(S):

PHOTO Outgoing Assembly minority leader Richard Katz speaks to repor ters.

Associated Press