For the first time, Davis admitted he had been slow to respond to the energy shortages that gripped California two years ago and led to rolling blackouts. He also said he "could have been tougher holding the line on spending" when the state, now burdened with huge deficits, had a nearly $9 billion budget surplus. But Davis stopped short of apologizing.
As Davis spoke, the campaign of one of his most prominent challengers previewed television ads that will begin to air statewide Wednesday. The 60-second spot features actor Arnold Schwarzenegger, tanned and clad in a blue blazer, speaking directly into a camera and saying that the state's political leaders have failed.
"This historic election has come about because there is a tremendous disconnect between the people of California and the leaders of California," Schwarzenegger says. "We can do better than that."
Schwarzenegger's campaign declined to say how much it is spending on the spots.
The actor, who has dodged questions about his specific positions, says in the ads, "I stand for fiscally responsible government, rebuilding California's economic engine, putting the needs of children first and reforming our political system so that the public interest comes before special interests."
Schwarzenegger is scheduled to meet Wednesday with his economic advisers, billionaire investor Warren Buffett and former secretary of state George P. Shultz, and then to hold his first news conference.
The reaction to Davis's speech from his challengers was unforgiving. Columnist Arianna Huffington, running as an independent, said, "He's still in the back pocket of special interests, and no boilerplate speech can change that."
GOP businessman Bill Simon said, "Let me ask Gray Davis this: Is it a conspiracy when 2 million of our citizens sign a petition? When 87 percent of the citizens in our state disapprove of Gray Davis?"
About 1.7 million Californians signed petitions calling for the Oct. 7 recall election, though only 1.3 million signatures were valid. A nonpartisan California Field Poll released a few days ago showed that 58 percent of likely voters favor removing Davis from office.
Two years ago during California's energy crisis, Davis refused to accept political blame. Instead, he said only that he had inherited a flawed energy deregulation law signed by his Republican predecessor, Pete Wilson -- who is now chairman of Schwarzenegger's campaign -- and that California was being exploited by greedy out-of-state power companies.
In today's speech, Davis began with the electricity debacle. "I know that many of you feel that I was slow to act on the energy crisis. I got the message. I accept that criticism."
But he blasted back, saying, "We got no help from the federal government. In fact, while I was fighting Enron and the energy companies, these same companies were sitting down with Vice President Cheney to draft our national energy policy."
Davis also said that as the Northeast went dark last week, the lights stayed on in California.
Only a few months ago, Davis was telling voters furious with his handling of the state's enormous financial crisis that he was a victim of circumstances beyond his control: the national economic downturn that has burdened many states, California's budget structure and the refusal of GOP lawmakers to bargain with him over tax increases.
Today, Davis said, "I could have been tougher in holding the line on spending when we had surpluses."
But, he added, "Let's be clear: Most of the increases on my watch went to education and health care. I make no apologies for that."
He also denied that he hid the magnitude of the state's $38 billion budget shortfall during his reelection campaign last year.
"The Republicans behind the recall say they want you to vote me out because of past mistakes," Davis said. "They don't give a rip about past mistakes. They want power."
Davis reminded voters of his support for abortion rights, privacy rights and civil rights. "And while the Bush administration spends its time peering into our bedrooms, our libraries and our homes," he said, referring to the USA Patriot Act, "I have been working with Democratic legislators on the toughest financial privacy bill in the nation."
Davis also made a joking reference to his bland public persona and the charisma of his main challenger, Schwarzenegger. "I may not be the warmest TV personality in politics, but I'm warming to this fight. I will go over our state, meet all comers, answer all questions, and I'll ask a few, too."
Despite the new strategy reflected in this evening's speech, some political analysts said it will be difficult for the governor to reverse his political slide before the recall.
"He's trying to take the responsibility without the blame," said Jack Pitney, a professor of government at Claremont McKenna College in Southern California. "He wants to look determined and aware of the state's problems, but he is running against several years of bad perceptions."
Davis also is struggling to keep Democrats solely focused on defeating the recall. But with the entrance of Lt. Gov. Cruz M. Bustamante (D), that job is much more difficult.
As Davis appealed to voters to give him another chance, Bustamante appeared outside his home in suburban Sacramento today and outlined his plan to rescue California from financial ruin by increasing taxes on businesses and the wealthy. Bustamante called his package "Tough Love for California."
Staff writer Brian Faler in Washington contributed to this report.
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