Midterm elections: The morning after - CNN International

Harry Reid says he's ready to compromiseTea Party-backed S.C. governor-elect says people found 'power of their voice'Indiana congressman intends to gut Obama's health care policy

(CNN) -- Here's what you need to know right now about election results, their impact and how politicians are reacting:

Reid ready to compromise

Having survived a strong re-election challenge and seen the Democratic majority in the Senate slip to one, Senate Majority Leader Harry Reid said he's eager to work with Republicans to craft legislation and create jobs.

"It's important we realize we have some work to do," Reid said on CNN's "American Morning." "... We need to stop using words like 'chastened' and I think what we have to do is recognize that all of us, all of us who are going to be in Senate, have to work together. That's the message from the American people.

"We must work together, and I am looking forward to that. ... I think this is a time we need to set aside our speeches and start rolling up our sleeves and have a little sweat on our brow."

Reid said both parties need to give a little.

"We know that the Republicans of this last Congress picked up the name 'The Party of No.' I think that Democrats have to work with Republicans, and Republicans have to work with Democrats. It's not a one-sided deal," he said.

Reid identified job creation as his top legislative priority.

"As far as I'm concerned, my No. 1 job is to help create jobs, and I'm going to do everything I can. The only thing that's going to solve our economic problems in this country are jobs, jobs and more jobs."

A big question the next Congress will deal with is whether to extend the Bush-era tax cuts and/or make other changes to the tax code.

"I want to do everything I can to make sure those tax cuts remain in place," he said. "I'm not awkward, I'm not bullheaded, I'm willing to work with my Republican colleagues on a way to get this done."

Repeal of the health care reform legislation -- a key promise of many Republican candidates just elected -- is not an option, Reid said.

"The health care bill is very important," he said. "I wish the Republicans had worked with us when we did the health care bill. If there's some tweaking we need to do with the health care bill, I'm ready for some tweaking. But I'm not in any way going to denigrate the great work we did as a country in saving America from bankruptcy, because the insurance industry bankrupted us."

Nikki Haley vows to make more history

Nikki Haley, the first woman elected governor of South Carolina and the first woman of Indian descent elected governor of any state, said she hopes to really make history with the work that begins in January.

Haley, a Republican state representative, defeated Democratic state Sen. Vincent Sheheen after a bitter campaign.

"This was people finding the power of their voice," Haley said on "American Morning." "This was people saying, 'We want government to remember who it is that they work for. We want government to know the value of a dollar, and we want jobs and the economy to come first.' This was all about the people saying, 'We've had enough.'"

Haley, who enjoyed strong support from Sarah Palin and the Tea Party movement, said government will stick to the basics under her administration.

"We look at the fact that government was intended to secure the rights of the people; it was never intended to be all things to all people," Haley said.

"And certainly, when you give a man a job you give a man pride. We're going to give a lot of pride to the state of South Carolina."

She said she hoped her Indian heritage makes people proud but doesn't want that to be her legacy.

"As historic as I think a lot of observers are going to say this is, I hope what's historic is the work that we do in January and the things we get done in the first year of our Haley administration. ...

"We're proud for the women in this country. We're proud for the Indian-American community. We're proud for our families. But most importantly we're proud for the state of South Carolina."

Indiana's Pence wants to 'rip up' health care act

Indiana Congressman Mike Pence, who last night won his sixth consecutive term in office, said he saw the Republican victories as a direct message from the American people.

"I think the message coming out of last night's historic election is the American people want to see an end to the federal runaway with money and government takeovers," he said.

Pence also said he and the rest of the Republican Party are excited "to be worthy of the second chance the American people have given us."

And he pointed at President Obama's health care policy as part of the reason for the Republican gains Tuesday night.

"Obamacare was roundly rejected. We need to rip it up, root and branch," he said. "The American people don't want to be mandated to purchase health insurance. ... They don't want all the new taxes that come with it."

And he said Republicans won't just repeal the health care legislation, they'll replace it with a lower-cost option that Americans want.

Still, he said, last night wasn't just entirely about the Republicans, it was about their supporters who demanded their voices be heard.

"I don't see last night so much as a victory for one party or another," he said. "I see it as a victory for the American people. And I think they are going to stay engaged in this process."

When it comes down to it, Pence told CNN, loosening the government's role was the key to getting the country back on track.

"You get government out of control, you get government out of the way, and the economy will come roaring back," he said.

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Midterm Races Could Hold Key to White House, Congress in 2012 - Fox News

President Obama's name is not on the ballot Nov. 2, but his chance at a second term in the White House could be on the line. 

As the president and top Democratic surrogates like Bill Clinton criss-cross the country to campaign for their party's gubernatorial candidates, party operatives are looking ahead to what this year's race will mean for 2012. 

And so far, it's not looking good for Democrats. 

Several peculiarities in the 2010 landscape could have great bearing on the next election. For starters, Republicans are projected to pick up several seats in the 37 governors' races being held next Tuesday. That could give whoever is running as the GOP presidential nominee in 2012 a powerful surrogate at the helm of a number of key swing states. 

In addition, this year's governors' races coincide with the 2010 Census, the national head count that will be used as the basis for reshaping congressional districts nationwide. The governors, by virtue of their veto pen and other factors, have considerable sway over that process -- and if Republicans make the kind of gains forecasters predict, the party will be poised to redraw the congressional map to their advantage come 2012. This would help the party either build, or reinforce, a congressional majority two years from now, while having a more indirect impact on the presidential race. 

Finally, projections show that when the districts are redrawn, red states will likely end up gaining seats in Congress while blue states will lose them. For Obama, this means a more grueling and challenging climb to the 270 electors needed to secure reelection in 2012 -- the number of electors each state has is based on the number of its congressional seats, and if deep-red states like Texas grow, that's bad news for the sitting president. 

"The states that are going to gain congressional seats are the ones that John McCain won," said David Avella, executive director of Republican recruitment arm GOPAC. 

All these factors are on the minds of Republicans who, in some cases, are plotting a two-cycle path to Washington domination. The Republican Governors Association publicly claims that its races in 2010 are the key to a 2012 wave. 

"The RGA believes Republicans won't win back the U.S. Senate, House or presidency until first reclaiming a majority of governorships for the GOP," the group says on its website. 

Democratic governors provided Obama a big boost in the 2008 presidential election in several battleground states -- Democrats were at the helm of nearly every "purple" state Obama won, from Colorado to Virginia to Ohio to Iowa. 

But what if some of those seats change hands? Ohio Gov. Ted Strickland was an enthusiastic advocate for Obama's presidential campaign in 2008, but now he's fighting for his political life against GOP candidate John Kasich. Republican gubernatorial candidates are poised to take back Democratic seats in Obama-supporting Pennsylvania, Iowa and Michigan, among other states. The storied battleground of Florida is still a toss-up in the race between Republican Rick Scott and Democrat Alex Sink. 

Avella said the outcomes play heavily into the 2012 presidential race. 

"The governor controls the political machinery for his party," he said. He said Republican governors will be able to leverage fundraising networks in support of the GOP nominee as well as shape legislative agendas that could rally Republican voters in the next cycle. 

Plus, most of the new governors -- as well as the state legislatures -- will have sway over the redistricting process, one of the biggest prizes to come out of the Nov. 2 midterms. 

"That's why the governor's (seat) is so important at this particular time" said Jerry Shuster, political communication professor at the University of Pittsburgh. "It's a critical time for both parties and they know that." 

Governors can help shape congressional districts for the benefit of their party's incumbents and challengers; for Republicans, this would mean upping their chances at a congressional takeover in 2012 if they fall short next month. This process also can have an indirect effect on the presidential race. Avella noted that a boost in the number of Republican-friendly congressional districts could give more momentum to GOP candidates, and in turn rally more GOP operatives and money to turn out the vote for the presidential nominee. 

While Obama would not have to worry in most states about the shape of congressional districts -- presidential electors are divvied up based on the popular vote in each state -- the individual districts come into play in Maine and Nebraska. Those two states have a hybrid system where the votes in each congressional district factor into which presidential candidate wins their electors. 

More importantly, a study released at the end of September showed that blue states stand to lose about a half-dozen districts while red states stand to scoop up about that many as a result of the redistricting process. 

The analysis from Election Data Services projected that Texas, a GOP stronghold, would gain a whopping four congressional districts. New York, a Democratic powerhouse, would lose two, according to the data. 

Shuster said the impact of those shifts on the White House race depends on a host of factors. If the economy starts to turn around, it's a "limited" issue, he said. But if Republicans field a strong candidate and the economy stagnates for another two years, "then it has the possibility of having an impact on the outcome of the election."

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