SOME DEMS HINDERED BY ACCUSATIONS, PROBES.

Byline: Steve Geissinger Sacramento Bureau

SACRAMENTO - Democrats gearing up for a battle against Gov. Arnold Schwarzenegger over politically remaking the state find many of their top leaders stumbling or crippled by corruption probes.

That's a dramatic turnaround from several years of total Democratic domination after the only statewide GOP officeholder, former Insurance Commissioner Chuck Quackenbush, resigned following a probe into the alleged channeling of insurance-firm money into a nonprofit group.

``(Democrats) fear the albatrosses around their necks will sink them,'' said Karen Hanretty, a state GOP spokeswoman.

First, voters replaced unpopular Democratic Gov. Gray Davis with a celebrity in Republican Schwarzenegger, who ran as a reformer.

Now, Secretary of State Kevin Shelley and Senate President pro tem Don Perata, D-Oakland, face investigations of alleged fiscal improprieties.

Two other statewide-elected Democrats, Lt. Gov. Cruz Bustamante and Insurance Commissioner John Garamendi, stumbled during the recall election. Bustamante ran unsuccessfully against party leaders' wishes and lost. Garamendi jumped into the race and right back out again.

Both of them, along with Shelley, had been thought to be potential gubernatorial material. Now recall efforts have been mentioned in connection with Shelley, and termed-out Sen. Debra Bowen, D-Redondo Beach, announced plans to run against him in 2006.

``It would take a comeback of Nixonian proportions to put Shelley back into contention for higher office,'' said Jack Pitney, a government professor at Claremont McKenna College. ``If you hear of Kevin Shelley now, it's in terms of corruption problems.''

Shelley is accused of lax oversight of millions in federal dollars meant to improve the state's voting systems. A state audit indicated some of the money went to ``questionable'' contracts with Democratic allies and consultants who attended partisan political events.

Shelley acknowledged mistakes but said they were unintentional, and he has taken steps to resolve the issues.

Shelley also faces other probes. Sacramento County is looking into the actions of a top Shelley fund-raiser. State officials are reviewing allegations Shelley abused staff members. Officials in Washington, D.C., may probe his use of federal funds.

Shelley had been on his way up politically. He ran the complex but problem-free gubernatorial recall election in 2003 and was hailed for steps aimed at ensuring accurate electronic voting.

``It was a very divisive debate, but it won him a lot of fans across the country,'' said Kim Alexander, a nonpartisan analyst of voter trends.

Now, the Schwarzenegger administration is looking at whether it can wrest control of the federal election funds from Shelley.

The governor also is leading a sweeping campaign for reform of state spending, pensions and political districts. In the effort to counter him, Shelley, Bustamante, Garamendi and Perata have been sidelined to some extent, analysts say.

And state Controller Steve Westley has been handicapped somewhat by his highly public support last year of Schwarzenegger's moves to avoid a state fiscal meltdown.

Of the remaining high-profile Democrats, Assembly Speaker Fabian Nunez, D-Los Angeles, is a relative newcomer.

State Treasurer Phil Angelides and Attorney General Bill Lockyer, both discounted somewhat politically by possible runs for governor in 2006, and relatively little-known State Superintendent of Public Instruction Jack O'Connell, have hit the road to oppose some Schwarzenegger initiatives - but have drawn little attention so far.

Steve Geissinger, [phone]

sgeissinger(at)angnewspapers.com