Yeah, blue spruce is definitely a problem species here in the Midwest: A lot of insect and disease issues. It could by Rhizosphaera needle cast, Cytospora (Leucostoma) Canker, Stigmina needle blight, SNEED, etc.
The U of I Plant Clinic has a great publication regarding spruce insect and disease issues and should be used to address your questions and concerns:
http://web.extension.illinois.edu/plantclinic/downloads/Plant%20Clinic%20Report%20Spruce.pdf