Speculation is rampant now that Stephen P. Laffey, the former Republican Cranston Mayor, U.S. Senatorial candidate and presumptive Republican front-runner for governor in 2010, has taken himself out of the race.

Meanwhile, former Warwick Mayor and U.S. Senator Lincoln Chafee who defeated Laffey in a bitter Republican primary for the Senate in 2006 said, “The chances are good” when asked if he would jump into the race for governor as an independent candidate yesterday morning.

Laffey, a conservative’s conservative, known for his colorful, outspoken personality, sense of humor and fearless approach to taking on public sector unions, announced his decision on 630 WPRO last Friday. Laffey said he didn’t think Rhode Island voters were serious about fixing the state’s fiscal problems.

“You really only want me if you have a serious financial problem in a large organization and you want to fix it,” said Laffey. “And I don’t think people want to fix it.”

During an interview with the Beacon<$>, Laffey said he was put off by the losses last year of competent reform-minded fiscally conservative candidates like Dave Hathaway in Richmond and James Haldeman in North Kingstown. Laffey cited those losses as evidence that Rhode Islanders want the status quo as opposed to the change platform he’d run on.

Laffey’s decision leaves State Representative Joseph Trillo (R-Warwick) as the only current Republican candidate openly seeking the office. On the Democrat side, General Treasurer Frank Caprio, Attorney General Patrick Lynch, Lieutenant Governor Elizabeth Roberts, Providence Mayor David Cicilline and former Lieutenant Governor Charles Fogarty are all rumored to be considering the office.

Trillo, when asked about Laffey’s departure, reacted coolly, saying he was and still is readying for a fight. He also complimented his would-be rival.

“Laffey has some excellent qualities,” he said.

“We need outspoken people like him in our atmosphere. It’s outspoken people that make changes.”

Trillo, though still in his exploratory phase, sounds like he’ll be a candidate for the office.

“I got into this fully expecting to run against a popular Democrat, a defeated U.S. Senator [Chafee], and also thinking I’d have to win a primary against a powerful candidate in Steve Laffey,” said Trillo.

Trillo brushed off a recent poll conducted by pollster Victor Profughi, which showed he had minimal support and name recognition. Trillo pointed out that had someone conducted a poll of the governor’s race in 2002 with more than a year and a half to go before the election—nobody would know who Governor Carcieri was either.

Trillo said he’d welcome a chance to run against Chafee and a Democrat in the general election.

“I’m hoping Chafee gets into the race,” said Trillo.

Chafee’s comments on Tuesday signal that he’ll be more than happy to grant Trillo his wish.

“I think my experience as Mayor of Warwick and what I’ve learned and demonstrated there, which is that government requires a team effort, qualifies me for the job,” said Chafee.

“That’s one of the main problems we have here. We’ve failed to create teamwork.” There are still murmurs that Chafee could rejoin the Republican Party. Chafee put those to rest.

“That’s not going to happen,” he said.

“I thought long and hard when I left the party and I did not want to disaffiliate and then rejoin. I decided that if and when I leave, I leave.”

Chafee, when asked if he wanted to comment about his former, bitter rival’s departure from the race, responded with a one-word answer understood in several languages.

“No,” he said.

Laffey’s departure also invited speculation Mayor Scott Avedisian could run for Governor as a Republican.

When contacted yesterday, Avedisian said that it’s far too early to speculate what political office he’ll seek in 2010.

“There were developments last week and I think we need to let the dust settle and see who is going to run,” said Avedisian.

But it seems unlikely that Avedisian will seek the governor’s office. A close ally of Chafee, he admitted that he would never run against him. He wouldn’t say whether he would run on an independent ticket with Chafee.