Add New York City Councilman Domenic Recchia to the list of Democrats who are mulling over a challenge to Rep. Vito Fossella (R) in 2008.

Recchia told Crain’s Insider last week that “a combination of everything that’s going on in the country and city” is prompting him to take a look at the race. He believes transportation and education would be among his top issues.

Recchia, who is term-limited in 2009, has raised $88,000 for an undisclosed city election, according to Crain’s, but likely would be able to transfer most of that into a Congressional account.

Meanwhile, City Councilman Michael McMahon (D) told the Staten Island Advance last week that he is continuing to ponder the race.

“I encourage the interest,” said McMahon, who also is term-limited in 2009. “It’s good to have good candidates looking to take on the race. It raises the whole profile of the campaign. For anyone to say ‘it should be reserved for me’ would be a mistake.”

State Assemblyman Michael Cusick (D) and Councilman Bill de Blasio (D) are also mentioned as possible Fossella challengers.

— Josh Kurtz