BOSTON--State Attorney General James Shannon lashed out at House Speaker George Keverian '53 (D-Everett) and the Massachusetts House yesterday, saying his ethics bill and a corruption probe into the speaker's office led House leaders to cut his budget.

The attack drew an angry response from Keverian and a demand for an apology. Keverian called Shannon's charges "grossly unfair" and suggested that Shannon himself may be smarting from criticism that he has failed to investigate aggressively corruption allegations against Senate President William M. Bulger (D-South Boston).

A whirlwind day of charges and countercharges between two powerful Democrats on Beacon Hill began with a morning news conference in Shannon's office. Using unusually blunt and harsh language, a visibly angry Shannon said "people in [Keverian's] office...at various points made it difficult" for his investigators to proceed.

"Keverian is the one who is responsible for this," Shannon said. "The speaker has repeatedly communicated to me both directly through his staff and through members of the Legislature his unhappiness that there was and is an ongoing grand jury investigation of his office."

Two former aides to Keverian and one former House aide face state charges of fraud in connection with alleged theft of state property, including video equipment.

"There is no question in my mind that what brought this about was the indictments," Shannon told reporters summoned to his office overlooking the Statehouse.

Shannon's anger was directed at a House vote March 8 to cut $1.9 million from an account that pays for his consultants. The cut would hinder his office in obtaining expert witnesses for a variety of cases from nuclear power to hazardous waste.

And Shannon repeated his charge that the House vote was motivated by opposition to his ethics bill, which would limit to $40,000 the amount legislators and other top state officials could earn in outside income.

"It's clear what the legislative leadership wants me to do. They want me to back off," Shannon said.

Several hours later, a fuming Keverian gathered reporters in his own office and noted that he and the House leadership defended Shannon's budget and opposed the floor amendment to cut the expert witness account.

The speaker also said he has cooperated fully with the investigation being conducted by Shannon and the State Ethics Commission and has ordered his entire staff to do the same. But Keverian did add that the investigation has proceded slowly and that he has told Shannon so.

"The only conversation I had--and I had it [with Shannon] in the presence of other--I asked if there was any way that they could conduct the investigation a little quicker," Keverian said.

"Some people think that the reason he is doing this is to recover from the rather critical statements that have been made about his lack of strength in the political corruption area," Keverian said. "He has chosen the wrong target."

Kevcrian added, "He owes me and he owes this Legislature an apology."

Shannon acknowledged that by his statements he now must cope with strained relations with both the House and the Senate. His relationship with Bulger has been strained over Shannon's call for a renewed federal investigation of the 75 State St. estate deal and over Shannon's prosecution of court officers for their conduct in a gay rights demonstration.