I got the same email that Randy Bayne did:

All indications are that Gary Davis is dropping his bid for the 3rd Congressional District and switching to another run for Elk Grove City Council. Just a few minutes ago, I was alerted that his Facebook page had changed, and just after that was forwarded a copy of a newsletter from Gary Davis – Elk Grove City Council announcing his run for the council. The logo was even the same as his congressional campaign logo – changed to Elk Grove City Council – of course.

Davis had trouble keeping up with the other two candidates, Bill Slaton and Ami Bera, in fundraising.  With Q3 just ending, obviously it wasn’t happening for him, so he cut his losses.

Bera, a doctor who challenged incumbent Dan Lungren directly at a town hall meeting in August, has raised the most cash so far, but Slaton entered the race just a few weeks before last quarter’s deadline, so we’ll see.

While CQ Politics lists the CA-03 race as leans Republican, Lungren has not been offered help by national Republicans in their next campaign arm fundraiser.  Only Mary Bono Mack of CA-45 figures in that fundraiser.  That’s probably more a function of Palm Springs Mayor Steve Pougnet outraising Bono Mack last quarter – she needs the help more than Lungren in the money chase.  But overall, I’d still mark CA-03 as a top target seat in 2010, with CA-45 next on the list.  And Democrats know this.