The politics of illegal immigration is alive and well this week in California.

One example: can– and should– Governor Arnold Schwarzenegger declare an emergency along the state’s border with Mexico, following recent similar actions by the governors of Arizona and New Mexico?

Democrats, apparently seeking to gain some traction on the issue, say he can. Last week Assembly Speaker Fabian Nunez made a formal request of the governor to declare an emergency, a request Schwarzenegger (just as formally) turned down late Wednesday. In a letter to Nunez, the governor said that state law doesn’t allow him to declare an emergency for a border issue like illegal immigration.

So why does the formal declaration matter? In part, because an official “emergency” might make the state eligible for more federal funding on the issue. Democratic staffers today distributed to reporters a congressional report that makes that very claim (a report, of course, that was written at the behest of Capitol Hill Democrats).

Meantime, Republicans here in Sacramento are also wading into the issue, calling on Speaker Nunez to help speed through new legislation to clarify any murkiness that might exist in the law with regards to declaring an emergency over illegal immigration. In a conference call with reporters this afternoon after a Mexico City meeting with President Vicente Fox, Nunez said he will not support the GOP plan if it also calls for “sealing” the border.

And the issue may be gaining traction. In today’s new poll from the Public Policy Institute of California, illegal immigration was the third most mentioned topic when pollsters asked for the most important issue facing the state. True, the economy and education were chosen more often. But look what subjects illegal immigration beat out: crime, the cost of housing, health care costs, the environment, even the increasing cost of gas.