Cindy Beauvais had gread advice! I called Craftwood and they will recycle latex paint and varnish for $1 per quart, $2.50 per gallon and $5 for a 5 gallon can. Mutual Ace is more expensive and Home Depot does not accept paint.
If the paint is latex, you can add kitty litter, sawdust or shredded paper to absorb it, and then you can put it next to the trash can with the paint can lid removed.
To recycle it for free, SWALCO has two monthly drop offs for HCW - Household Chemical Waste.
For a list of what is and is not acceptable, and dates, see this link. This is the place to get rid of cleaning products, oil based paints and more - and do so without damaging the environment.
There is a very convenient Electronics Recycling program on Half Day Rd next to the Police Firearms Training Center in Highland Park for electronics and more. They take anything that has an electric cord or battery, car batteries, styrofoam, flourescent and CFL bulbs, computers, TV's, etc. The man there is very helpful and will take everything out of your car for you. It is open Tuesday and Friday mornings.