DEBATE FALLOUT SCHWARZENEGGER GARNERS GOP SUPPORT, DAVIS ATTACKS.

Byline: Rick Orlov and Harrison Sheppard Staff Writers

In the aftermath of the recall campaign's most important candidate debate, Arnold Schwarzenegger picked up strong support from key Republican leaders Thursday and found himself under harsh attack by Gov. Gray Davis.

William Simon, who lost to Davis last November, and the California Republican County Chairmen's Association threw their support to the movie star after his performance in his first and only debate Wednesday. Rep. Darrell Issa, R-Vista, who financed the recall petition drive, was expected to endorse Schwarzenegger today.

The breakthrough in support from largely conservative Republican leaders strengthened Schwarzenegger's hand and further isolated Tom McClintock from his base, but the Thousand Oaks state senator insisted he would not back down on his promise to stay in the race.

Davis, after a town-hall meeting in Burbank on Thursday afternoon, focused his attacks on Schwarzenegger as his most dangerous rival. He accused the actor of exaggerating and distorting the extent of the state's economic woes and tax burden in order to gain votes.

``I'm tired of him running down the state of California,'' Davis told reporters. ``I'm upset and angry that California is being misrepresented to the rest of the world''

Davis said he will announce by Saturday whether he intends to challenge Schwarzenegger to a one-on-one debate.

Specifically, Davis said Schwarzenegger's claims that California is the highest-taxed state in the nation and has the highest workers' compensation costs are wrong. And Davis said Schwarzenegger continues to bring up the state's $38 billion deficit even though the budget has been signed and balanced - through significant borrowing and with another deficit looming.

With the Oct. 7 recall election drawing close, Davis has stuck to his strategy of heavy television advertising questioning the recall process, bill signings targeted to win support from specific groups and town-hall meetings.

Analysts see the final days of the campaign shaping up as a Davis versus Arnold battle, especially if the polls in the next few days show Davis in a close fight for his political life and Schwarzenegger within striking distance of Lt. Gov. Cruz Bustamante in the race to become governor if recall is approved.

``If you look at Schwarzenegger's performance in the debate and the flood of endorsements that are coming his way, the governor is feeling challenged,'' said Republican strategist Allan Hoffenblum, who is not involved with any of the campaigns.

``A lot of people were waiting to see how he would handle himself in the debate and he did well enough so that everyone else is left in the dust. Davis can't stand by.''

Dan Schnur, the GOP consultant who managed the brief campaign of businessman Peter Ueberroth, said Davis has focused up to now on defeating the recall process but might see a need to change.

``He has been running a campaign about how the process is unfair, but he could change that,'' Schnur said. ``In the past, Davis has been able to be successful by presenting himself as the lesser of two evils.''

Experts said they expect the remaining 11 days of the recall campaign to get rough.

In appearances, speeches, events and television commercials, the candidates seek to win over the approximately 20 percent of voters who have been reported undecided in recent polls.

``These last 11 days could be very nasty and very, very ugly,'' Schnur said. ``I think we will see people start to really take the gloves off and go after one another.

``It's odd because in most elections a negative campaign drives down voter turnout. But this is a special election, a recall the likes no one has ever seen before.''

Simon, who dropped out of the recall election last month, urged the party to rally behind Schwarzenegger. ``I think it's time for all Republicans to unify behind Arnold,'' he said.

The actor also won the backing of the state Republican County Chairmen's Association, which normally doesn't make endorsements.

Schwarzenegger campaigned in Orange County after participating in a town-hall forum in Los Angeles with nationally syndicated talk host Sean Hannity that was broadcast live throughout the country.

McClintock continued to speak out on talk radio and television shows, insisting he is in the race to the end. ``I made a promise when I got in this that I would stay through to the end.''

Schnur said he did not expect McClintock to quit - and that Schwarzenegger might want to keep him in the contest.

``If McClintock is pressured out of the race, a lot of his supporters might decide to vote against the recall or just stay home,'' Schnur said. ``It might be better to have him in the race to assure that the recall succeeds.''

Davis continued to stress the role he was playing in his official duties - speaking out for an extension of Megan's Law and signing a measure on child safety.

``The governor is showing incredible restraint and focus on his job,'' campaign spokesman Gabriel Sanchez said. ``And, you can expect to see more of the same up until the election.''

Sal Russo, the Republican consultant who helped engineer the recall, said his organization has not received any funds to do its own commercials.

``We hope to be able to do something this final week, but what happened is that each campaign set up its own recall committee and people donated to those,'' Russo said. ``We are a little concerned. I think we should have been talking to voters all along.''

Staff Writer Ryan Oliver contributed to this report.

Rick Orlov, [phone]

rick.orlov(at)dailynews.com

CAPTION(S):

2 photos

Photo:

(1 -- color) Gov. Gray Davis, attending a meeting outside KNBC studios in Burbank on Thursday, is turning his attention to GOP rival Arnold Schwarzenegger.

David Sprague/Staff Photographer

(2 -- color) Bill Simon, left, who lost last year to Gray Davis in the governor's race, endorses Arnold Schwarzenegger in Los Angeles on Thursday.

Chris Pizzello/Associated Press