By Rene Sanchez
Washington Post Staff Writer
Tuesday, January 5, 1999; Page

LOS ANGELES, Jan. 4 — A new era in California politics began today as Gray Davis, a veteran state official known for being more bland than bold, took the oath to be governor and became the first Democrat in 16 years to hold the nationally influential office.

In an inaugural that reflected his tempered, no-frills political style, Davis pledged foremost to revitalize the state's public schools, which were once the envy of the nation. He also vowed to lead California past the emotional battles over affirmative action and immigration that have riven the state, saying, "You can finally ring down the curtain on the politics of division." The remark drew a standing ovation and was clearly aimed at the man he is replacing, two-term Republican Pete Wilson.

"I pledge to you an administration that is at once tough-minded and big-hearted," Davis said in an address broadcast live across the state. "We will restore a sense of decency and compassion to government."

Davis, 56, is taking office with advantages many other elected officials wish they had: His easy victory in November over state attorney general Dan Lungren (R) gives him a strong mandate. His party now controls both houses of the California legislature and virtually all other top elected offices in the state, a sweep unseen here since the late 1950s. California's economy also has been in good shape, and Davis has great support among Latino voters, the fastest-growing segment of California's electorate.

To say that expectations for him are high, especially among traditionally Democratic constituencies, is an understatement. And because California is the most populous state, with the world's seventh-largest economy, the priorities its governor sets often ripple across country.

"This has been a long time coming," said Art Pulaski, executive secretary of the California Labor Federation, which represents 2 million rank-and-file workers and campaigned hard for Davis. "It's such a relief to have a Democrat in there, finally. Gray knows how to get things done, and we think he is going to be inclusive and very responsive to regular folks in California."

Nationally, Democrats are jubilant for other reasons: As governor, Davis will play a pivotal role in redrawing California's increasing number of congressional districts (now at 52) after the 2000 census, a task that could substantially tip the balance of power in Congress. Having Democrats lead California also could be a huge asset to the party's next nominee for president. Vice President Gore flew to California to attend Davis's inaugural today.

Davis will be the first Democrat to lead the Golden State since Edmund G. "Jerry" Brown Jr., who left the governor's office in 1982. But he is no stranger to state politics. He has spent the past two decades working in the shadow of one governor after another -- first as Brown's chief of staff, then as a legislator, state comptroller, and most recently as lieutenant governor to Wilson, who by law could not seek a third term.

Yet there are signs that Davis may not be able to meet all Democratic expectations. Some economic forecasters say the state's economy may be slowing down and it could face a $1 billion shortfall in its budget, which last year exceeded $75 billion. Such a problem could limit Davis's ambitious agenda for improving schools, the issue that California voters say they care about most.

Satisfying all the interests that bankrolled his campaign also could prove difficult. There are concerns that the close ties Davis forged during the election with the California Teachers Association could hamper him from enacting meaningful school reforms, such as holding teachers more responsible for student failure.

Just how Davis will govern is still a mystery to many because he has shown both liberal and conservative tendencies and did not offer many detailed promises during his campaign. He has not said, for example, if he will try to repeal Wilson's decisions to enforce a ban on affirmative action and to limit government services to illegal immigrants.

"There is no question that Gray is still an enigma who keeps most of this thinking to himself," said Ken Khachigian, a longtime GOP consultant in the state. "The real risk he could face is dealing with the many demands of Democratic interests at the same time he is trying to govern as a moderate."

Davis began outlining a few of his priorities today. He promised that any high school student who graduates in the top 4 percent of his class will be guaranteed admission to the University of California, and he vowed to protect a woman's right to have an abortion.

"I will govern neither from the right nor the left, but from the center," he said, "propelled not by ideology, but by common sense that seeks better results."