In a press release today, State Treasurer Alexi Giannoulias spells out how Gov. Blagojevich's arrest hurt the state's bond rating and ultimately drove up the interest rate on the $1.4 billion bond deal approved yesterday:

The legal problems surrounding Gov. Rod Blagojevich have already cost the state more than $20 million, Illinois State Treasurer Alexi Giannoulias said today.

The state was forced to delay its plan to borrow $1.4 billion last Thursday as a result of the governor’s arrest and missed the chance to sell short-term bonds at reduced interest rates.

News of the governor’s legal situation, a rating downgrade and market volatility drove up the interest rate by several percentage points on the bonds sold today.

“The cost of corruption is real,” Giannoulias said. “It’s clear that the governor’s problems are impacting the state in a variety of ways, including financially, at a time when we can least afford it.”

Here's how he arrive at the $20 million figure:

Moody’s “MIG 2” grade makes the securities less palatable for bidders. As a result, the state will pay approximately $26.6 million in interest to borrow $1.4 billion.

If the sale had taken place last week as scheduled, Giannoulias estimated the state would have only paid about 1 percent or less to borrow $1.4 billion, or a total of only $5.8 million.