The Region - News from June 30, 2001

SACRAMENTO â€”  Under continuing pressure for employing two well-known Democratic communications strategists on the public payroll, Gov. Gray Davis announced late Friday that he had scrapped their deal.

In a statement released at 7:42 p.m., Davis announced that he had dropped a controversial contract with high-priced communications consultants Mark Fabiani and Chris Lehane. Davis’ statement said that Fabiani left state service altogether, and that Lehane would work for a lower fee.

A month ago, as his poll numbers fell, Davis retained Fabiani and Lehane for what was to be a six-month contract at a fee of $30,000 a month in taxpayer funds. Fabiani and Lehane also do consulting work for Southern California Edison, helping the troubled utility win approval of a rescue deal that Davis is pushing.

Critics of the proposed Davis-Edison deal quickly attacked the hiring, saying that Lehane and Fabiani had a conflict of interest.

Republican legislators contended that Fabiani and Lehane, who had worked in the Clinton White House defending the former president against a variety of scandals, are political operatives who should not have been paid out of taxpayer funds. Fabiani also is a well-known figure in Los Angeles, where he once worked for Mayor Tom Bradley, another Democrat.

A Republican anti-tax advocate sued to force Fabiani and Lehane to disclose their outside clients and recuse themselves from issues related to the electricity crisis, while Controller Kathleen Connell, a Democrat feuding with Davis, vowed to withhold their pay.

Davis had insisted Lehane and Fabiani are “worth every penny� they were paid, saying last month that they helped him shape his message that independent power generators are responsible for California’s energy crisis.

Davis’ statement also said Lehane would be paid $9,900 a month, roughly the same pay as Davis’ previous communications director, and that hewould not work for Edison while consulting for Davis.