Democratic gubernatorial hopeful Jill Long Thompson was poised early this morning to take her underdog status into the fall election against Republican Mitch Daniels. A topsy-turvy night of returns had her leading by about 5,400 votes with 99 percent of the precincts reporting.

A few precincts around the state still had not reported but more than 1 million votes had been counted by 1:20 a.m.

Long Thompson, 55, had the early lead Tuesday night then Indianapolis architect Jim Schellinger surged ahead by more than 8,000. She slowly cut his lead and finally took it back when the bulk of Lake County precincts reported.

“I would have been here sooner but I was a little preoccupied,” she joked, while addressing a crowd of about 50 people at Grand Wayne Center a little after 11 p.m. “I want to thank all of you for sticking around for this party that I think is going to be a victory celebration.”

She acknowledged the race was “neck and neck” but said if the remaining precincts come in as her campaign is forecasting, she would be the state’s first female gubernatorial nominee.

“This is an extremely exciting year for Hoosier voters,” Long Thompson said. “We could make it an exciting eight years with the right leadership in the governor’s office.”

Schellinger, a 55-year-old first-time candidate, echoed Long Thompson at his Indianapolis event.

“What an exciting night, and we’re still going,” Schellinger told supporters in Indianapolis. “It’s going to be a great night for us. We’re going to win this thing.”

His staffers were also excited by his strong showing, especially given a number of recent polls that showed Long Thompson leading.

Jennifer Wagner, spokeswoman for Schellinger’s campaign, said he traveled extensively in northwest Indiana and was endorsed by every mayor in that region.

“Obviously this is going to be a close race,” she said. “We’re hopeful that Jim will pull this victory off and tomorrow we can start campaigning against Gov. Mitch Daniels.”

The gubernatorial primary has been largely overshadowed by Indiana’s unexpected role in the presidential nomination.

Initially Schellinger had the edge – he entered the race first, had a money lead and garnered some key endorsements.

But he might have spent too much time raising money and doing his “listening tours” before moving forward with policy initiatives. And his staff had some growing pains – losing a campaign manager, communications director and other staffers.

Long Thompson, meanwhile, started with name recognition in northeast Indiana from her days as a congresswoman, and was the first to take significant positions on various issues, including a plan to cap the state sales tax on gasoline at $2.75.

But she also might have turned some voters off by attacking Schellinger for his ties to increased property taxes as a result of school projects his company has designed. He in turn ran ads questioning congressional votes she cast supporting cuts to Social Security and Medicare.

Schellinger has won the fundraising war, bringing in $2.3 million, according to his latest campaign finance report filed in mid-April, compared to $908,000 for Long Thompson. Both have reaped hundreds of thousands more since then in additional large contributions.

Both have featured their own backgrounds in the race.

Schellinger has continually told the story of growing up in a family of eight children in South Bend, working nights and summers in a tool and die shop to pay for his college degree in architecture from the University of Notre Dame.

He landed one of his first jobs at Indianapolis firm CSO Architects in 1986 and within ten years became the company’s president.

Schellinger and wife Laura live in Indianapolis with their three sons.

Long Thompson, meanwhile, has stressed her experience in the U.S. House of Representatives from 1989 to 1995.She was the first in her family to graduate from college, earning a bachelor’s degree in business from Valparaiso University and her master’s and doctorate in business from Indiana University.

A former educator, Long Thompson grew up on the family farm outside of Larwill in Whitley County. She now lives with her husband, Don Thompson, in Marshall County on a farm near Argos.

The Associated Press contributed to this story.

nkelly@jg.net