By the time January 2008 rolled around, presidential candidates were already breaking campaign finance records. And by November 4th, they had shattered even more. With so many candidates, so much money, and so much riding on the outcome, campaign contributions were major headlines this year. Below is my list of the top five money and politics stories for 2008 (in no particular order).

1. Everyone now knows how to pronounce Blagojevich (Blah-goy-eh-vich)

Gov. Rod Blagojevich (D-Ill.) was thrust into the spotlight in December when he was arrested and charged with allegations of quid pro quo cash politicking, including offers to sell President-elect Barack Obama’s senate seat, holding money for children’s healthcare hostage for political contributions, and keeping a list of preferred state contractors that were also campaign contributors.

The only difference between what Blagojevich did and what many politicians in statehouses and in Washington, D.C. do every day is, as one colleague put it, “a wiretap”.

As the Fair Elections Now coalition stated recently, “…allegations against Blagojevich are not that different than what happens in state capitals and in Washington, D.C. every day with elected officials seeking donations from those who have something to gain from government decisions and handouts.”

2. Success in Connecticut.

Connecticut saw the first implementation of its Clean Elections, or full public financing, system in 2008. Seventy-five percent of candidates running for the General Assembly ran as Clean Elections candidates this cycle. And after all the ballots were counted on Election Day, 81 percent of winning candidates were elected using Clean Elections. This is a record for first time implementation of a new Clean Elections system.

Listen to what some of these candidates had to say about the system:

Connecticut Clean Elections lawmakers will join hundreds of other Clean Elections candidates elected in states across the country this year.

3. Obama’s presidential fundraising.

A: Obama’s success with small donors.
This was a historic election. President-elect Obama went from underdog to victor. Obama raised nearly half of his campaign contributions in donations of $200 or less. An astounding number, considering the total amount of money he raised.

Public Campaign wrote about the small donor phenomenon on many occasions, grateful for the focus on small donors, but with the knowledge that maxed out donors and bundlers are still required for winning big ticket campaigns. .

B. Obama opts out of public financing.

Of course, Obama’s massive fundraising at every level led to our choice for 3b. Obama had no problem raising money. He had millions of donors and his supporters seemed willing to give and give. In June, when Obama opted out of the presidential public financing system, deformers and consultants dug the grave and buried the Watergate-era reform under six feet of earth and wanted to take other reforms with it.

The current presidential public financing system is dead. Just as campaign field organizers wouldn’t use 30-year-old maps to plan their canvassing, Obama opted out of the antiquated system. Congress and Obama should look at the successful Clean Elections-style public financing system as models for an updated presidential system that harnesses the power of small donors and achieves the original goal of reducing the role of big money special interests in the political process.

As Nick Nyhart and David Donnelly said in June, “With his decision, Sen. Obama now has a special obligation to make passage of comprehensive public financing of all federal elections a priority if elected.”

4. House Fair Elections Now Act introduced.

In September, Reps. John Larson (D-Conn.) and Walter Jones (R-N.C.) introduced the Fair Elections Now Act, companion legislation to the Senate bill.

In the 111th Congress, Larson will serve as chair of the Democratic Caucus. Sen. Duck Durbin (D-Ill.), sponsor of the Senate bill will be Assistant Majority Leader. For the first time in history, we have leadership in both chambers supporting the bipartisan, bicameral legislation.

Public Campaign and other reform groups lauded the introduction, in the midst of the financial collapse. "Wall Street's campaign cash was able to buy reduced regulatory oversight of their investment policies, leading us to the worst economic crisis since the Great Depression and Congress offering them a $700 billion bailout," said Public Campaign's President and CEO Nick Nyhart. "The Fair Elections Now Act will remove the power of the big money Wall Street crowd, level the political playing field, and return Congress to the voters."

5. 2008 federal election costs over $5 billion.

We knew it was going to be big, but $5 billion? The total is about split between the presidential race and Congressional races, according to CRP.

While Obama may have had transformative small donor success, few others did. The share of money being raised from small donors by members of Congress is dwindling, according to the nonpartisan Campaign Finance Institute. The amount of money they are raising overall, though, is on the rise. The average cost of winning a House race in 2008 was $1.1 million, according to CRP.

Industries gave big this year and when the 111th Congress convenes they’ll expect some rewards for their big dollars. Supporters of the Voters First Pledge—Public Campaign Action Fund, Public Citizen, Change Congress, and U.S. PIRG—had a message for lawmakers:

"In the 111th Congress, more than 120 members, including leadership in both chambers, have committed to changing our pay-to-play system and making passing Fair Elections a priority. We look forward to working with the new members of Congress and the administration to increase support in Congress and move Fair Elections forward. Only by freeing our elected officials from the constant pressures of fundraising can we ensure that Washington works for us, not big money donors."
 
Well, that’s my list. If you think I’m missing something, leave it in the comments.