STATE Rep. John Perzel was easily re-elected last November to the state House seat he has held since 1979 and boasted that he had spent more money helping other Republican campaigns than he had on his own race.

Yesterday, Perzel and nine current and former employees of the House Republican caucus surrendered to a Dauphin County district judge after their indictment Thursday on charges of theft, criminal conspiracy and conflict of interest. Perzel and five of his co-defendants were also charged with obstruction of justice.

So what becomes of Perzel's 172nd district, which wraps like a horseshoe across a broad swath of Northeast Philadelphia?

Perzel may have provided a hint about his political future Thursday, when he released a statement declaring his innocence and intent to fight the charges; this before state Attorney General Tom Corbett had even finished explaining the indictments in a news conference.

Known for his pugnacious style, could Perzel run for re-election next year even as he fights the criminal case?

Perzel's attorney, Brian McMonagle, said a decision would be made in the "next couple of days" about next year's election.

A Perzel re-election campaign would present a quandary for Republicans and an opportunity for Democrats. Would a Republican challenge Perzel in the primary election? Would Democrats, who came close to defeating Perzel only once in the last decade, see an opportunity to strike?

Marc Chilutti, a Democrat who came within 92 votes of beating Perzel in 2000, said Republicans still fear the powerful politician, who worked his way up to House majority leader and then speaker before being deposed in 2007.

Chilutti, who no longer lives in the district, predicted that Perzel would seek re-election.

"There's a great chance for someone who really wants to serve the residents of that district," Chilutti said. "Who that person is, I have no idea. But I'm sure there's a lot of phone calls being made today."

Perzel has not faced a serious challenge since Chilutti.

Democrat Tim Kearney has run several times, with Perzel beating him by wide margins. Former Fraternal Order of Police President Rich Costello lost to Perzel by a 2-1 margin last year.

Corbett said the the close call with Chilutti in 2000 is what prompted Perzel to spend more than $10 million in state funds for employees and computer firms to develop and manage computer programs that helped run political campaigns.

If Perzel is convicted, it could mean a staggering amount of restitution to be paid to the state.

Perzel was released yesterday after posting 10 percent of his bail, set at $100,000.

State Rep. Denny O'Brien, a Northeast Philadelphia Republican who has had many political run-ins with Perzel and unseated him from the speaker's post in 2007, predicted that Perzel would not run again.

"I can't see why anyone would want to," O'Brien said, considering the charges against Perzel.

Marc Collazzo, chairman of the Loyal Opposition, a local GOP group trying to make the party more competitive in the city, expects there will be significant concern about what happens in Perzel's district.

Perzel, Collazzo said, could see a primary challenge if he decides to run for re-election.

"That area is one of the last and strongest Republican areas of the city," Collazzo said. "This is someone, even though he's not speaker anymore, who wielded a lot of power."