As the University of Illinois struggled to acquire a permanent source of funding from state government during the early 1900s, patrons of the land grant university gave legislators an incentive to dip into the state's coffers.

Under a law passed in 1905, legislators began awarding two four-year scholarships a year, one to the U of I and one to any other state university. Creating the program was part of a sweeping lobbying effort to enhance the U of I's political standing and to boost enrollment, according to records in the Illinois State Archives and in the papers of David Dodds Henry, the U of I's president at the time.

"You have to remember this program began at a point when the university was still developing and searching for funds," says William Maher, the U of I's archivist. "These scholarships were seen as a way to get important people interested in the university."

Today the U of I boasts a $2 billion annual budget and consistently is ranked among the nation's top universities. Bolstered by an influential alumni network and a plethora of graduates who work in state government, the university is a political force in Springfield and throughout the state. But while the popular and competitive Big Ten school doesn't need legislative scholarships to attract students or enhance its prestige any longer, lawmakers refuse to give up their 91-year-old perk.

Records obtained by the Champaign-Urbana News-Gazette suggest a reason the program persists. One of every five scholarships that legislators awarded between 1989 and 1995 at two state universities, Eastern Illinois

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and Western Illinois, went either to the relatives of political supporters or to students who lived outside the lawmakers' districts. Although many legislators say they award their scholarships based on academic achievement or financial need, the only criteria they are required to follow is that the recipient must live in their district. "We don't discriminate against people who knock on doors and campaign for people," says Senate President James "Pate" Philip, a Wood Dale Republican who gave an EIU scholarship in 1992 to the daughter of DuPage County Republican Precinct Committeeman James Smith.

For the fortunate students who receive a legislative scholarship, the benefits are substantial: They pay no tuition for the duration of the award, only fees and room and board costs. The scholarships cost $36 each in 1905, but following a decade when tuition increased at double the rate of inflation, the program now costs taxpayers more than $4 million annually. Most legislators also split the scholarships into one-year or one-semester awards so they can reward more students each year.

"When I first came down here, nobody asked for the scholarships," says Sen. Bruce Farley, a Chicago Democrat first elected to the House in 1973. "It's changed as college became more expensive."

Farley is one of three legislators who gave WIU scholarships to a student who lived in former House Speaker Michael Madigan's district on Chicago's Southwest Side, despite the provision in the scholarship law requiring recipients to live in the legislator's district. Other lawmakers also gave scholarships to students represented by Madigan, a Chicago Democrat who still controls a well-oiled precinct organization and a campaign finance machine that bankrolls Democratic candidates in tight election races. Madigan, now the House minority leader, refuses to discuss the scholarship program or respond to questions about whether the awards are traded for political favors. But other current and former legislators say it's a common practice.

Critics say the lack of standard criteria invites abuses of the program. Moreover, for nearly 20 years before The News-Gazette's report on the scholarships, the names of most recipients had remained secret. The newspaper obtained the names of scholarship winners at EIU and WIU under the Illinois Freedom of Information Act, a law enacted to guarantee public access to government records. Citing a federal privacy law, legislators, the U of I and three other state universities (Southern Illinois, Northern Illinois and Illinois State) rejected requests for similar information.

"If you work in a culture where politics is a game of debits and credits, these scholarships are one of the credits lawmakers can issue from their political bank account," says James D. Nowlan, a former state legislator who currently is a senior fellow at the U of I's Institute of Government and Public Affairs. "While there are many legislators who base their tuition awards on impeccable criteria and merit, there undoubtedly are others who use this as a perk in the political game," says Nowlan. "It's unfortunate because it casts the entire General Assembly in a bad light."

The program hasn't always been shrouded in secrecy. Indeed, for years legislators routinely disclosed the names of their scholarship winners by calling their local newspapers, which listed the recipients next to the winners of awards from such groups as the American Legion and the Daughters of the American Revolution. Parents could clip the story and proudly post it in a scrapbook or tack it on the family refrigerator for all to see.

Some legislators still release the names of their scholarship winners. But the general policy of openness came to an abrupt halt in 1977 when the U of I sought and received a ruling from federal officials that releasing the names of General Assembly Scholarship recipients would violate the Family and Educational Rights and Privacy Act of 1974. Federal officials previously had ruled the law didn't cover legislative scholarships, but it's no coincidence the university's request for a more favorable ruling came following increased scrutiny.

Before the federal law took effect, journalists encouraged by the Watergate scandal began reviewing the actions of public officials more closely. A 1974 investigation by The Associated Press revealed several legislators had awarded U of I scholarships to their own children and to relatives of political cronies, which led to one of many ill-fated attempts to abolish the program. "What's with this privacy when public funds are involved?" asked then-Rep. Richard Mugalian, a Palatine Democrat who sponsored legislation to dump the program.

Legislative scholarships for the fiscal year ending June 30, 1995

University	Number of scholarships	Value of scholarships	% of Total
University of Illinois	810	$2.5 million	56.4%
Northern Illinois University	224	$583,800	13.1%
Southern Illinois University	222	$541,500	12.2%
Illinois State University	182	$412,000	9.3%
Eastern Illinois University	129	$212,200	4.8%
Western Illinois University	71	$124,200	2.8%
Northeastern Illinois University	82	$104,200	2.4%
Chicago State University	28	$45,100	1.0%
Governors State University	8	$9,700	0.2%
Total		$4,432,700

Source: Illinois Board of Higher Education

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The most recent would-be reformer is Sen. Harry "Babe" Woodyard, a Chrisman Republican who sponsored bills during five of the last six years to eliminate legislative scholarships. At one point, Woodyard couldn't even get a committee vote on his proposal. When his bill finally made it to the Senate floor last year, only 19 of the state's 59 senators voted to abolish the program.

Ironically, Woodyard gave some of his scholarships to political supporters at the same time he fought to get rid of the program. Records show he awarded EIU scholarships to the wife of Douglas County Clerk James Ingram and to the daughter of Vermilion County Republican Precinct Committeewoman Jacquelyn Keever. "I know I've done it, and I would bet most of my colleagues have as well," says Woodyard. "That's why I think we all would be better off if we just got out of this business altogether."

Critics say if lawmakers refuse to abolish the perk, they should at least publicly disclose the names of their scholarship winners. But it's unclear if even that modest reform would pass the Republican-controlled General Assembly. "Sunshine is the best disinfectant," says Sen. Peter Fitzgerald, a Palatine Republican who voted to abolish the program last year. "I don't think we should be doing this in the first place, but getting it out in the open would clear up a lot of abuses."

For the second straight year, the House has passed legislation to abolish the scholarship program. But unless the Senate agrees, all 177 legislators will retain their authority to hand out free tuition. Although reform-minded legislators say election-year politics could improve their chances this year, Philip wants to keep the program. "As far as I'm concerned, our members haven't abused them," Philip says of the scholarships.

Gov. Jim Edgar, meanwhile, says he would sign legislation to abolish or reform the scholarship program. When Edgar was a state legislator in the 1970s, he publicly disclosed the names of scholarship recipients and established a committee of local educators to review applications. "I think you've got to be very careful because there

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always are going to be questions that you are giving them to a friend or as a political reward," says Edgar. "I think the legislature would save themselves a lot of grief if they changed it."

Many legislators shrug off the criticism. They say hundreds of students apply each year for the scholarships, many of whom come from families that have incomes too high to qualify for need-based financial aid but still cannot afford to pay college costs. Some legislators note that a number of scholarships go to students with no apparent political connections.

"This is one of the very few perks an Illinois legislator has anymore," says Rep. Charles "Chuck" Hartke, a Teutopolis Democrat who gave his cousin's daughter an EIU scholarship last year. "If we take these scholarships away, then we also should take them away from [U of I football coach] Lou Tepper and [former U of I basketball coach] Lou Henson. They can't put together a winning team, but I pick good kids, many of whom end up on the dean's list."

Most other states that once allowed legislators to award college scholarships have eliminated the programs following scrutiny of abuses. Besides Illinois, Louisiana and Maryland are the only states left with similar programs on the books.

Tulane University in New Orleans recently issued new guidelines for legislative scholarships following disclosures that several legislators had awarded tuition waivers to their own children or to relatives of political supporters. Among other requirements, Louisiana lawmakers must now publicly disclose the names of all scholarship recipients. Applicants also must state whether they are related to any elected public officials.

The U of I and other state universities don't plan to follow Tulane's lead. Perhaps that's because Tulane is a private university and doesn't rely on state legislators to approve a major portion of its operating budget. Even if Illinois university officials considered reforming the legislative scholarship program, the angry reaction from lawmakers following the recent disclo-

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sures made them think twice.

The criticism was so fierce that WIU President Donald Spencer sent a letter to all 177 legislators apologizing for releasing the scholarship records.

"Obviously, I regret that Western Illinois University's release of this information has caused consternation among many of our friends within and outside the General Assembly," Spencer wrote in the February 19 letter. He went on to say the university's legal counsel had since determined the records should not have been released to The News-Gazette because doing so violated the federal privacy law.

Another portion of Spencer's letter suggested a more likely motive behind that interpretation of the law: When the university released the information, it relied on a legal opinion from the Bloomington law firm of Dunn, Hundman, Stanczak and Willard, which represented the now-defunct Board of Governors. The Dunn firm noted the federal law contains an exemption for "educational awards."

"General Assembly Scholarships, in the Dunn firm's judgment, clearly fall within the category of 'educational awards,'" Spencer wrote. Moreover, the firm advised WIU that The News-Gazette's request for information under the Illinois Freedom of Information Act "should be construed as broadly as possible in justifying the release of information."

It will take a lawsuit to get the names of legislative scholarship recipients at the U of I and other state universities, even though those same institutions rush to announce the names of football and basketball recruits who receive athletic scholarships.

Like athletes, most people consider it an honor to win a college scholarship. But when it comes to General Assembly Scholarships, most legislators recite a different mantra: Secrecy is the best policy.

Michael Hawthorne is the Statehouse bureau chief for the Champaign-Urbana News-Gazette.

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