The organization is required to have a consultant evaluate the efficacy of the lottery sales forecasts and Educational Enhancement Trust Fund (EETF) contribution rates to validate that transfers to the EETF will be sufficient to cover the annual bond debt service.
Mather developed econometric models of instant ticket and draw games sales in the state to forecast sales volumes and revenues under alternative payout levels, game launches, and economic conditions. Using these models, Mather provided recommended payout levels that maximized total operating margins from Instant games. In addition, Mather received data on the annual debt service for the Lottery Educational Bonds secured by the Lottery revenues to validate that transfers from the Lottery meet the requirements.
Mather completed the prior bond floor study for this organization in 2016, and we were able to compare the results from the 2019 and 2016 study to identify trends in revenues and sales volumes. Mather issued the report certifying that the contribution rates from the Lottery would exceed by the required amount the annual bond debt service.