During the early years of Gray Davis' governorship, the ideological tone of the Capitol reflected his fence-straddling centrism, reinforced by the Assembly's dominance by then-Speaker Robert Hertzberg and moderate Democrats.

The expansionist policy agendas of liberal legislators, personified by the Senate president pro tem, and their allied interest groups were frustrated by the incremental, business-friendly attitudes of Davis and Hertzberg. Corporate and professional groups, meanwhile, pumped millions of dollars into Davis' campaign coffers and those of Hertzberg and other "business Democrats," as they called themselves.

The ideological worm began to turn to the port in 2002. Hertzberg stepped down from the speakership because of term limits, succeeded by a more liberal Herb Wesson.

Liberals won a series of legislative primary election battles with moderate Democrats (thanks largely to a highly orchestrated effort by unions and other liberal interests). And Davis, facing a re-election campaign with an extremely low approval level in the polls, veered to the left to shore up his Democratic base.

The result was an outpouring of measures to enact the long-delayed agendas of unions, environmentalists, personal injury attorneys, consumer groups, gay rights advocates and others on the Democratic left. And the flow of liberal bills continued in 2003 as liberals expanded their hold on the Legislature and Davis faced another tough campaign, this one a recall challenge that would drive him from office.

The remaining centrist Democrats in the Assembly, known to insiders as the "Mod Squad," were rendered largely irrelevant during 2002 and 2003. But Davis' recall and the sensational election of actor Arnold Schwarzenegger as his successor is reconfiguring the Capitol, and one effect may be to re-elevate moderates into influence.

In theory, the Mod Squad, comprising about a dozen Assembly Democrats, could join Republicans to create a controlling majority on key policy issues, especially those favored by Schwarzenegger, such as an overhaul of workers' compensation. In practice, that would be difficult as long as liberals control committee chairmanships and as long as moderates are reluctant to break partisan ranks.

Schwarzenegger and his advisers -- including Hertzberg, not coincidentally -- believe, however, that courting the Mod Squad could bear fruit. That's why the governor hosted a dinner for a bipartisan group of moderates Wednesday evening. While there was little talk of specifics, those who attended said, Schwarzenegger clearly sees in the moderates kindred souls who could help him in future confrontations with the still-dominant liberals.

Schwarzenegger's overtures, meanwhile, are coming amidst a dust-up -- how severe is uncertain -- between the Mod Squad and Fabian Núñez, a one-time Los Angeles labor organizer who will become the Assembly's new speaker in a few days.

Moderates say they were promised three leadership positions in the Núñez regime but are now being told they'll get only one -- that of majority floor leader. Núñez confirmed that Assemblyman Dario Frommer, who ran against Núñez for speaker, will become floor leader but insisted that he's made no other leadership decisions. Moderates contend that Núñez offered leadership positions to Assemblymen Joe Nation and Joe Canciamilla -- the latter as chairman of the powerful Budget Committee -- but then pulled back after getting heat from liberals. Núñez responded with a "no comment" when asked about that version of events.

Canciamilla and Republican moderate Keith Richman formed a much-heralded independent partnership on the budget for two years, and liberals see Canciamilla as too willing to cut spending and too unwilling to raise taxes -- the key conflict on dealing with multibillion-dollar deficits. Nation has been chairman of the Rules Committee, which plays a key role in the flow of legislation and handles internally important housekeeping functions. He, too, had been a speakership hopeful and wanted to remain at Rules, but it's now certain, Assembly sources say, that he'll be replaced with a Núñez loyalist.

Could the Mod Squad's unhappiness with Núñez drive it into Schwarzenegger's brawny arms? We'll see.