President George W. Bush's Republicans were left licking their wounds after losing two state elections and as the party's rising star Arnold Schwarzenegger failed to get key referendum measures passed.
Only tycoon Michael Bloomberg kept up party honour, winning a new term as mayor of New York after digging deep into his personal fortune. The party that rules the US Senate and House of Representatives was worst hit by its defeat in the conservative state of Virginia.
Democrat Tim Kaine won the bitterly contested race in the south-east state despite the last minute appearance of Bush in support of Republican candidate Jerry Kilgore.
Kaine secured 52 percent of the vote to Kilgore's 46 percent. The Washington Post said the campaign, marked by bitter, negative tactics by the Republicans, could provide "political lessons" for Democrats nation-wide ahead of mid-term elections next year.
Democrat Jon Corzine won the race for governor of New Jersey after another campaign that turned venomous with personal attacks in its closing stages.
Corzine beat his Republican rival Douglas Forrester by 54 percent to 43 percent.
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