Schiff's election-night party was at the Pasadena Hilton, where his supporters expressed little doubt that Schiff would win.
Antoinette Perry, who said she supported Schiff because he is responsive to voter needs, said, "They said it was going to be a victory party, and I didn't question that."
Schiff's challenger, Republican John Colbert, watched the national election returns at the historic Green Hotel in Pasadena on Tuesday night. His supporters credited the businessman for engaging conservatives in a traditionally liberal area.
"I think he really got the base energized," Jennifer Barberie of Pasadena said. "In California they always just overlook Republicans."
Sherman's advantage in name recognition and campaign money helped him get a comfortable lead on his main challenger, Republican Mark Reed, in a strongly Democratic district.
"This is a very tough time for the country, and there is a tendency to just think, 'We'll vote against everybody who's held office that things are going to get better,'" Sherman said. "It seems the voters of the 27th District don't think that way, and I'm honored and humbled."
Gatto, an attorney and former aide to Sherman, also led Republican Sunder Ramani in the race for a full two-year term in the 43rd Assembly District seat representing Glendale, Burbank and parts of Los Angeles. In June, Gatto beat Ramani 59% to 41% in June to win the right to fill the final months of former Assemblyman Paul Krekorian's term.
On Tuesday, Gatto appeared alongside Sherman at the Democratic Party's San Fernando Valley headquarters in Van Nuys, thanking his supporters and promising to restore fiscal responsibility at the state capitol.
"I've said since Day 1 of the campaign that Sacramento is in serious need of good government reform," he said in an interview.
Ramani said his campaign had challenged the Democrat stronghold in the district.
"We feel very strong about the effort," he said.
Voters outside Burbank and Glendale polling places indicated the avalanche of television, radio and direct mail ads had little influence.
Joe Zuno, who voted at the Boy Scouts of America hall on Grandview Avenue, said he went for Gatto. "He came across as hard-working." Zuno said.
But Zuno said he walked in to the booth 50-50 on Schiff vs. Colbert, and went with Colbert. "It was a gut thing," Zuno said.
— Editor Dan Evans and City Editor Jason Wells contributed to this story.