In California, state law requires that the annual budget be passed by a majority of two-thirds of the lawmakers. Currently, the chamber margins are such that Democrats need the support of eight GOP lawmakers to meet the supermajority required.

Earlier this year, the Republican minority in the California Assembly was able to delay the passage of the budget for a record 85 days.

That scenario stands to change with this election:

Between Sept. 5 and Oct. 15, Democrats registered 215,000 voters, almost twice as many as Republicans, according to county voter registration data. In several Assembly districts held by Republicans, Democrats have nearly closed the gap or even surpassed Republican registration.

Democratic leaders in the state are confident that they will be able to make big gains in this year's legislative elections.

Two of their candidates -- Fran Florez in Assembly District 30 and Manual Perez in Assembly District 80 -- are on the list of the DLCC's 2008 Essential Races.

We interrupt the election analysis to bring you a bit of policy news.

In the wake of the nation's deepening economic crisis, state leaders across the country are working hard to take action in response.

In California, lawmakers and Gov. Schwarzenegger are discussing the possibility of a special session to reassess budget priorities amidst the news that revenue for the state might fall as much $1 billion below the amount originally projected.

In New Jersey, both chambers of the legislature will meet for an address by Gov. Jon Corzine and the Senate Budget and Appropriations Committee plans a special hearing on the economy for next Monday.

State employees are among the people being impacted by the projected budget shortfalls. In many states, government workers are being offered early retirement packages, and others are being asked to work fewer hours or to pay more for benefits. Still other states, like Pennsylvania, have instituted a hiring freeze in an effort to balance their budget.

The possibility that municipal bond markets might become inaccessible is another huge potential problem facing local governments. State lawmakers have begun to appeal to the federal government for assistance, but it appears that there are legal barriers that would prevent Washington from coming to their aid. Namely, a longstanding provision of the Internal Revenue Code prohibits the federal government from guaranteeing the tax-exempt bonds that local governments issue.

We'll obviously have plenty more to say about politics as Election Day draws closer, but this crisis will be a major point of emphasis for our legislators in the near future, and we'll keep you posted on other responses as they develop.

Rep. Fabian Nunez -- Speaker Emeritus of the California Assembly and DLCC Board member -- has an op-ed in the California Progress Report where he takes a hard line against some Republican mischief:

[Last year] Republicans wanted to hold the state budget hostage to win an end-run around CEQA, California’s premier environmental law, which would have benefited oil companies and developers. Not only wasn’t that a budget issue, it wasn’t in California’s best interest and my fellow Democrats and I made it clear that it wasn’t going to happen [...]

This year the rollbacks the Republicans are floating would damage our air quality, disadvantage working people, deny the disabled their full rights and increase the jeopardy the state is facing from global warming. Speaker Bass and the Democratic leadership have rightly and strongly made it clear that the Republicans actions aren’t just unrelated to the budget they are bad for California and will not happen on their watch. The more the public knows about the hostage taking, and the more they see what is really being pursued, the more I believe they will back up the Democrats strong response.

One of the bills the GOP have attempted to delay is AB 32, a groundbreaking law to combat climate change.

This is California -- a place where Silicon Valley start-ups are investing serious cash in technologies to fight global warming. As Nunez notes, studies indicate that AB 32 might create as many as 83,000 jobs. That's part of why the bill has the strong support of the state's business community.

Is there anyone the GOP won't risk alienating these days?