State Rep. Scott Penny, who was appointed to the position by local Democratic Party leaders, used his one shot at handing out controversial legislative scholarships to give them to two students whose parents have connections with the party.

Penny, D-Fairmont City, was appointed to the House seat last year when Gov. Pat Quinn chose former Rep. Tom Holbrook, D-Belleville, to head the Illinois Pollution Control Board.

Penny, who is on unpaid leave from his job as police chief in Fairmont City, is not running for the House seat in November. He could not be reached for comment Friday.

The legislative scholarship program has often come under fire because of reports of lawmakers giving the perks to friends, relatives and political cronies.

There also have been federal grand jury investigations into the scholarships handed out by a few Chicago-area legislators.

With public pressure mounting, the legislature voted this year to end the program. It ended Sept. 1, which gave legislators one more opportunity to award scholarships.

Penny gave two four-year scholarships, the recipients of which both have ties to the St. Clair County Democratic Party.

One went to Danielle Fiudo, the daughter of a Fairmont City village trustee, Michael Fiudo. As a village trustee, Michael Fiudo is Penny's boss. Michael Fiudo could not be reached for comment.

Danielle Fiudo's scholarship is to attend Southern Illinois University Edwardsville.

The other went to Taylor Lundy of Belleville, a daughter of Michael Lundy, who is a Democratic Party precinct committeeman and a former city treasurer for Belleville. Michael Lundy now serves as executive director of the Southwestern Illinois Development Authority, a government entity created by the state to promote economic development.

Michael Lundy could not be reached for comment, but he told the Chicago Tribune he doesn't personally know Penny and didn't contact Penny about a scholarship. Michael Lundy said he was surprised when Penny called him and offered the scholarship.

Taylor Lundy's scholarship is to attend University of Illinois.

The Chicago Tribune, in a report published Friday, found that Penny was among several state legislators who used the final scholarship opportunity to award four-year tuition waivers, ensuring that the program stretches far beyond its end date.

Under the program, legislators have been able to dole out the equivalent of two four-year scholarships each year. In the past, many legislators have broken down that allotment into one-year scholarships, so that they had more scholarships to award.

Penny represents the 113th House District. Vying for the seat in the November election are Democrat Jay Hoffman of Belleville, who is a former state representative, and Republican Melinda Hult, who is a City Council member in Belleville.

Hult said: "Mr. Penny has shown the same disdain for fiscal responsibility as other members of his party. He follows in the steps of Jay Hoffman and others who have grossly abused the privileges of their office. As the parent of a college student, I ask the families of the recipients to face reality like the rest of us and refuse to let the taxpayers of Illinois give them a free ride."

Hoffman could not be reached for comment.

Contact reporter Brian Brueggemann at bbrueggemann@bnd.com or 239-2511.

Contact reporter Brian Brueggemann at bbrueggemann@bnd.com or 239-2511.