With the economy still uncertain and budget shortfalls nearly ubiquitous, it is the battles for the statehouses, not Congress, that are shaping up to be the most exciting in 2010. In 2009, 48 states have had to address or are still in the process of addressing budget shortfalls. This means that states will either have to raise taxes or cut services, and this means stepping on a lot of toes. As a result approval ratings haves dropped precipitously for many governors. Even though they are often powerless in the face of national issues like a recession, governors are often the first blamed when voters are restless.

The trend of weak incumbents is accompanied by a flood of open seats. 21 states, 9 Democratic and 12 Republican, have no incumbent for governor in 2010. Many of these open seats are in important states where the races are already very interesting. California’s Arnold Schwarzenegger is retiring, leaving the Republican front-runner, former eBay CEO Meg Whitman, to face off against San Francisco Mayor Gavin Newsom, who gained national attention for ordering the city to grant marriages licenses to same sex couples.

Another race to watch is Rhode Island, where former Republican Senator Lincoln Chaffe looks eager to run against state Attorney General Patrick Lynch or Treasurer Frank Caprio. While Rhode Island isn’t a big state, this race is worth watching because Chaffe is a rare political creature: a liberal Republican. Chaffe is pro-choice, against the death penalty, for gay marriage and voted against invading Iraq. His views were largely in line with Rhode Island, but he lost his Senate seat in 2006 because his status as a Republican helped the more conservative national republican party retain its majority in the senate. With former Rep. Rob Simmons competing against Chris Dodd for the Senate in Connecticut it looks like 2008 could be the year where liberal Republicans regain a small foothold in New England.

Massachusetts is no exception to this trend. Governor Deval Patrick, whose approval ratings have steadily declined since he took office, is seeking reelection. Declining tax revenues from the recession have left Massachusetts in a multimillion dollar hole. Many people voted for him thinking that a governor and legislature of the same party could get more done. But Patrick has been forced to cut spending from every corner of the budget to balance the budget. His plan to boost the economy and raise tax revenues by allowing a casino in the state was soundly rejected by the State House, making Patrick appear to be something of a lame duck. These problems have been compounded by a series of minor ethical missteps by the Patrick administration. He started off his term with a stumble, spending state money on drapery and a Cadillac, which he quickly reimbursed the state for when the media cried foul. State Republicans also slammed Patrick for cronyism, related to the hiring of next door neighbor and campaign contributor Dana Harrell to a position he created called “Director of Real Estate Services.”

What makes this race so interesting, though, is that it will be a 3- or possibly 4-way race. In addition to an as of yet undetermined Republican challenger, Patrick will compete against State Treasurer Tim Cahill, a former Democrat, who is running as an Independent. Convenience store owner Christy Mihos, a conservative independent who unsuccessfully ran in 2006, has expressed an interest in trying again.