D.C. council member John Ray said yesterday he is in the mayor's race to stay, even if he has to run his campaign from his home.

Ray, who recently laid off some campaign workers and asked his top three campaign workers to take a 15 percent pay cut, held a special press conference at his 13th Street campaign headquarters to tell reporters that despite recent reports of troubles in his campaign he plans to be in the race to the end.

"John Ray," he said, "is not about to drop out of this campaign. If I had to run the campaign from the basement of my house, I will be in it to the very end."

Last week Ray said he had cut back on staff to start a telephone bank. He said he hoped the phone bank would have a more positive effect on voters than his earlier efforts at radio advertising and placards on the sides of buses.

Yesterday Ray said he is still optimistic about his chances to win. He said he has planned major fund-raising events, including a birthday party, and hopes to have $350,000 by the end of July.

He said he is also encouraged by the response from voters reached by his phone bank, adding that results from the phone bank show about half the voters still undecided and he feels he can sway those voters to his camp. Ray has spent about $200,000 on ads, staff payroll and other expenses in campaigning since January for the Sept. 14 primary.