Well, among California Democratic legislators there are more and more "business Democrats", who are progressive on social issues, but fiscally are at least somewhat conservative (as were liberal Republicans of not so distant past, whom they essentially replaced). So, i don't expect big changes in fiscal-budget policy (especially with governor Brown, who has some fiscally conservative streak too).
The return of the Atari Democrat? But no, I don't think that's much of a trend in all honesty. Of course there are some more business minded Democrats who should be Republicans but can't win that way, but the majority are pretty normal New Dealers and Progressives.
Majority - may be. But Democratic "supermajority" consists of exactly 1 vote in state Senate and 2 - in Assembly. There are
much more then that number of moderates. Think Dodd and Glazer in state Senate, for example, and at least 6-7 Assemblymen too. BTW, Dodd is former Republican, but everyone knows that it's extremely difficult for Republican to win in Bay area - hence the reason for party switch)))