Although this year does not have the highest number of ballot initiatives, the scope and importance of issues is unprecedented. Everything from marijuana legalization to gay marriage to tax reform is being addressed.

"Initiatives will set the tone for the next two to four years," Waters says.

Ballot initiatives could also have an impact on close national races by affecting voter turnout and composition.

According to Waters, the voter turnout in states with initiatives is three to seven percent higher than those without. He says that this difference can be attributed to voters feeling that they are voting for direct results, not just promises. The Republican governor of Michigan attempted to keep a school voucher initiative off the ballot because he feared that it would cause more Democrats to vote.

Gubernatorial Races

With so much stress being placed on local politics this year, the gubernatorial races cannot be overlooked, either.

Eleven seats hang in the balance, with Republicans already holding a 30 to 18 edge. While Democrats have no hope of reversing those numbers, they do have the opportunity to cut into their deficit and could potentially pick up two to three spots.

Nationally, the gubernatorial races will not make much difference unless Bush follows through with his promise to work more closely with state officials while in office.