One way corruption creates jobs.

It’s a fine mess the Illinois legislature has gotten itself into. Its members have known since January that they had to fix a $12 billion budget deficit. But first they had to remove Gov. Rod Blagojevich from office and pretend they were shocked at all the corruption in state government.

Then the new governor, Pat Quinn, dropped a 50 percent income tax increase proposal into their laps, and the reform commission he appointed actually took its job seriously, proposing 39 separate measures to end the state’s “culture of corruption.” The top recommendation was imposing campaign contribution limits.

Not surprisingly, key lawmakers wanted nothing to do with either raising taxes or real reform, both of which might cause them to lose their jobs. So they dithered away the weeks and months without taking serious action on either measure.

They did manage to pass a $26 billion capital bill, which will raise $12 billion in taxes to leverage $14 billion in federal funds with the money to be spent on politically popular programs like water projects, school construction, roads and bridges.

But now, with just four days left in the legislative session, lawmakers are left with two kegs of dynamite: Ethics reform, which voters are demanding, and balancing the budget by increasing taxes and cutting state services, which voters will hate.

House Speaker Michael Madigan and Senate President John Cullerton, both Chicago Democrats, think they’ve come up with a way to finesse the problem: Today they’re expected to propose a watered-down package of reforms to use as cover for a tax increase.

Instead of real reform — one that includes hard caps on campaign contributions and ends the system in which party leaders can funnel extra money to favored candidates — the two Chicago leaders are expected to propose “Reform Lite.”

The legislature will be asked to tweak the state’s Open Meetings Act and make other cosmetic ethics changes, perhaps even setting a $5,000 individual campaign contribution limit. Legislators can then tell voters, gee, we raised your taxes, but at least we reformed state government.

The problem is that political committees, corporations and labor unions still would be able to give $10,000 to $20,000 contributions to state party and legislative committees, thus providing a convenient laundromat for extra cash. Federal candidates make do with $2,400 limits per election cycle. Illinois candidates should do the same. And the laundromat should be closed.

Gov. Quinn: Facing his profiles-in-courage moment. (AP Photo)

Mr. Quinn has promised not to sign the popular capital construction bill unless the legislature passes real ethics reform and sends him a workable budget. He must make good on that threat.

The capital bill would provide needed jobs and economic activity, but at the cost of expanding gambling (video poker in bars and restaurants and allowing lottery tickets to be purchased on the Internet); partially privatizing the state lottery, increasing license plate fees and raising taxes on liquor, candy and some beauty aids.

We’re not sure that’s progress, but it sure is a lousy way to finance government.

As badly as Illinois needs more infrastructure projects, it needs to clean up its state government more. The Blagojevich scandals, and before that the scandals under Gov. George Ryan, have created a once-in-a-lifetime window for reform.

Bucking the Chicago machine may be political suicide for a Democratic governor, but Pat Quinn is a lifelong reformer who now faces his profiles-in-courage moment. Cut no deals. Stand firm for real reform. Veto the capital bill and half-measures on reform. Tell the legislators they can spend all summer in special session if that’s what it takes.