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House speaker Ben Lujan apparently did what other Democratic Party leaders couldn't: persuade Jeff Armijo to drop out of the state auditor's race for good.

Armijo this morning announced that he's withdrawing - again - from the competition and dropping a lawsuit he had against the Secretary of State's Office for removing him from the ballot.

"Out of my profound respect for Speaker Lujan, I have concluded that in the interest of many wonderful New Mexicans that I will not seek the office of state auditor," he said at a brief news conference with Lujan and state Democratic Party Chairman John Wertheim.

In turn, the party will drop its suit against Armijo. And state Rep. Hector Balderas, a Wagon Mound Democrat, will appear on the Nov. 7 ballot against Republican Lorenzo Garcia.

The announcement at the Wyndham Hotel in Albuquerque ended a surreal series of events triggered late last month when The Tribune reported that two women had filed police reports alleging Armijo had made unwanted sexual advances. Armijo hasn't been charged with a crime and has denied the allegations.

Initially, Armijo said he would stay in the race. Then, after a meeting with Gov. Bill Richardson, he issued a statement saying he was ending his bid. Then he changed his mind again and said he would fight to the finish.

That prompted Richardson to issue a statement saying Armijo had "selfishly put himself before the Democratic Party."

By that point, Secretary of State Rebecca Vigil-Giron had removed Armijo's name from the ballot. In courts in Albuquerque and Santa Fe, Armijo sued Vigil-Giron to get back on the ballot while the party sued him to keep him off.

With the lawsuits gone, the legal question remains of what a withdrawal from a race should entail - a quandary that could be settled in the 2007 legislative session.

At today's announcement, Armijo said he considers himself the person voters wanted for the job.

"Although I still feel that I am the candidate for state auditor, my meager resources cannot match the mighty powers and resources of big government and powerful politicians," he said.

When asked to explain his statements and changes of heart, Armijo repeatedly thanked Lujan for his intervention.

Lujan said little about what led to the negotiations.

"The only thing I can tell you is the governor had nothing to do with it. We sat, had a long discussion . . . and we're happy about it," he said.

Lujan said he was glad Armijo agreed to step aside.

"Pride can sometimes get in the way of making important decisions that impact us, our friends and our families," he said. "Today, Jeff has shown that he can set aside his pride and put his love and compassion for the people of this state before his self-interest."

Lujan and Armijo quickly left the conference, with Lujan saying he had some deadlines to meet.

Although the conundrum has caused some intraparty consternation, Wertheim said the Democrats will move past it.

"I think we're past it, really, today. This resolves the dispute, and we're going to be pressing forward with our Democratic Party message, our record of accomplishments here in New Mexico," he said.

Armijo's announcement allows the Secretary of State's Office to meet its Friday ballot-printing deadline, something that loomed as hearings were scheduled this week in the lawsuits. A judge in Santa Fe on Tuesday even set aside time next Monday to finish the case before him, making party leaders anxious to resolve the disputes before ballots were to be sent to overseas and military voters.

Balderas, who was selected last weekend by the Democratic Party Central Committee, said in a statement he's looking forward to the race.

"I am glad that this chapter of the state auditor's race has come to a close," he said.