Agency: State Board of Education.
Purpose: The bonds are issued to finance the cost of constructing, acquiring, reconstructing, and renovating educational facilities for school districts, state colleges and universities throughout the State of Florida, including the costs of compliance with the constitutional amendment mandating class size reduction.
Security:
- Pledged Revenues: The bonds are payable from the first lottery revenues deposited into the Educational Enhancement Trust Fund. In each fiscal year a percentage of the gross revenue from the sale of on‐line lottery tickets and other earned revenue (excluding processing fees paid by lottery ticket retailers), and of instant (scratch‐off) lottery tickets is required to be deposited into the Educational Enhancement Trust Fund (“EETF”). The percentage of gross revenues deposited into the EETF is determined by the Department of the Lottery, in consultation with an independent lottery consultant, and is calculated to maximize both gross revenue collections and amounts deposited into the EETF. The bonds are not a general obligation or indebtedness of the State of Florida, and the full faith and credit of the State of Florida is not pledged to payment of the bonds.
- Debt Service Reserve Fund: Certain, but not all, of the outstanding bonds are secured by surety bonds in the debt service reserve account equal to maximum annual debt service on such bonds.
- Lien Status: The bonds have a first lien on the pledged lottery revenues.
- Additional Bonds Test: Additional bonds may be issued if the lottery revenues available to pay debt service exceed 300% of the maximum annual debt service for all bonds then outstanding and the additional bonds proposed to be issued.
Frequency: Lottery Revenue Bonds are issued periodically based on anticipated program cash requirements to fund construction.