PANETTA DROPS PLANS TO RUN FOR GOVERNOR; HARMAN DELAYS HER DECISION.

Byline: Rick Orlov Daily News Staff Writer

Leon Panetta, former White House chief of staff, dropped plans Monday to run for governor of California, saying it's just too late to raise enough money to mount an effective campaign.

Rep. Jane Harman, D-Torrance, meanwhile, has put off her decision at least until today on whether to enter the Democratic race that now consists of Lt. Gov. Gray Davis and multimillionaire businessman Al Checchi.

The contest for the Democratic nomination opened up last month when Sen. Dianne Feinstein, D-Calif., decided against entering the race.

Panetta, who had earlier indicated he would not run, said Feinstein's decision caused him to reconsider.

``I felt obligated to reassess my own plans, based on the importance of the next election to the future of California and the encouragement of supporters throughout the state to seek this office,'' Panetta said.

``My conclusion is that at this late date, it's just not realistic to expect that I could put together an effective campaign with the necessary resources and organization needed to win.''

The decision was motivated in part by the amount of cash Panetta would have to raise to be competitive with Davis, who has been raising money steadily, and Checchi, who is said to be willing to use $25 million of his personal wealth for the campaign.

``I estimate that I'd have to raise something like $1 million a week, starting now,'' Panetta said. ``This may be a sad commentary on the estate of money and politics, but it's a reality that can't be ignored.''

Panetta would not say whether he will endorse any of the candidates in the field before the primary.

Harman's chief deputy, Mike Monasmith, said the congresswoman is close to making a decision on mounting a campaign but hadn't decided as of Monday.

``There are a couple of more phone calls she wants to make to supporters, family and colleagues and other elected officials to get a final sense if it is possible,'' Monasmith said.

Harman, who has survived tough Republican challenges in the past, commissioned a survey over the weekend to test public sentiment of her possible entry into the campaign.

``The poll was informative,'' Monasmith said. ``I don't want to characterize it, but it did indicate that someone of (Harman's) background could do well in the race.''