IS THE MARYLAND Democratic Party in need of a bumper-to-bumper overhaul, or just some fine-tuning?

That question was on the minds of party faithful who gathered in Annapolis last week to take the first steps toward restructuring a 175-year-old political organization.

The mood was subdued inside the Miller Senate Office Building, where county-level leaders gathered to elect a new executive board, headed by former Montgomery County Councilman Isiah Leggett. Leggett, a Howard University law professor, will serve as chairman for the next four years.

Democrats have been doing plenty of soul-searching since last month, when Kathleen Kennedy Townsend became the first party member since 1966 to lose a general election for governor.

But Leggett and other leaders make a compelling case that Townsend's loss was a blip, an outlying event that is not part of a trend.

First, they point to Maryland's delegation to the House of Representatives, which went from a 4-4 party split to a 6-2 Democratic advantage.

"Our 50 percent increase in Congress is No. 1 in the country," said Wayne L. Rogers, the departing party chairman. "We should be proud."

The increase is largely attributable to the work of elected Democrats such as Gov. Parris N. Glendening and Senate President Thomas V. Mike Miller, who dove into the redistricting process with a single purpose: Get rid of Republican Reps. Robert L. Ehrlich Jr. and Constance A. Morella.

Then there's the General Assembly. While Republicans picked up eight seats in the House of Delegates, Democrats still outnumber them by more than 2-to-1.

In the Senate, Democrats won one more race than they did in 1998, although they dropped a seat overall (two sitting Republicans, Sens. Robert R. Neall and Patrick J. Hogan, switched parties between elections, and Neall was defeated).

Last year, Democrats won seven of eight contested mayoral elections, Rogers noted. Only one metropolitan-area county executive -- James M. Harkins of Harford -- is a Republican.

Fund raising, too, seems on track: In 1998, the Democratic Party spent about $1.8 million on various races; this year, they dished out $7 million.

"There is no sweep. There is no change. There is nothing wrong with the Democratic Party in Maryland," Rogers said in his farewell remarks.

Still, there's no denying that Townsend's loss knocked the wind from the party's lungs.

Maryland has, by most accounts, one of the strongest governorships in the nation. The chief executive enjoys broad authority to budget money (the General Assembly can only cut from the budget; it can't add or move) and appoint judges and members of oversight boards.

It is the governor -- not U.S. senators, county executives or the mayor of Baltimore -- who serves as titular head of the state party. So the Townsend defeat can't be taken lightly.

Leggett says there are lessons to be learned from the campaign: Democrats should speak with a unified voice and stop taking minorities and other groups for granted.

"I make no apologies for defending and fighting for core Democratic values," he said. "Far too often in the past year, I've heard too many leaders reflect something other than that."

Democrats say the new executive board better reflects their party's diversity. Three of five board members are African-American: Leggett, Baltimore City Councilman Keiffer J. Mitchell Jr. and Karren Pope-Onwukwe, an attorney from Prince George's County.

Two are women: Pope-Onwukwe and Del. Sue Hecht of Frederick. The treasurer, Gary Gensler of Baltimore County, is a former undersecretary at the U.S. Department of the Treasury and a former Goldman Sachs partner.

Leggett's selection is a tacit nod to Townsend's widely criticized selection of retired Adm. Charles R. Larson, a lifelong Republican, as a running mate. Leggett was under consideration for the position, and picking Larson inflamed emotions among some blacks.

"We should not have large segments of our base feel as if they are being taken for granted," Leggett said.

In a scholarly post-election analysis, Secretary of State John T. Willis -- widely regarded as an expert on Maryland's political history -- also rejects the claim that the 2002 governor's race changed the nature of state Democratic politics.

Maryland is becoming more politically polarized, and voting differences between the Washington and Baltimore media markets are clearer than ever, Willis said. But none of that fully explains Townsend's defeat.

A key factor, Willis believes, is a subterranean shake-up of voters' desires caused by the 9/11 terrorist attacks.

"9/11 had more impact on the election than I think we understand," Willis said. "It had an impact on the psyche of the voters. People are looking for a different kind of leadership. They're looking for a perception of strength."

But Willis said the numbers show that Democrats can still provide that leadership. "I have no doubt, having followed this for a long time, that we will emerge strongly from this," he said. "We'll be back up quickly."