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Blagojevich Arrest Cost Illinois $20 Million In Bond Deal: Treasurer

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Gov. Rod Blagojevich's federal corruption charges drove up the state's cost to sell bonds Tuesday by more than $20 million.

The $1.4-billion bond sale, which had been set for last Thursday, was delayed by Mr. Blagojevich's arrest two days earlier. The governor and his former chief of staff were charged in federal court with trying to sell President-elect Barack Obama's Senate seat, among other alleged shakedowns.

Those charges led to a drop in the state's credit and debt ratings, forcing the bonds to be sold at a higher interest rate, said Illinois Treasurer Alexi Giannoulias.

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