Appendix 1 - Recommendations

Task Force Recommendations by topic area.

Topic Area	Recommendation
Appropriate Stabilization Fund Size	Formally establish a multi-year budget forecast and stress test of the Stabilization Fund to inform fund balance adequacy  Regularly reconvene the Task Force to reevaluate adequacy of the Stabilization Fund, as well as other policies regarding long-term liability financing
Appropriate Level and Means of Funding Long-Term Liabilities	Use regular multi-year budget forecast and stress test to determine adequacy of funding levels for long-term liabilities and possible adjustments to funding policies  Consider introduction of regular pension fund stress testing to understand impact of varying risk scenarios  Evaluate benefits of a layered amortization model to pay down the actuarial and investment losses experienced each year over a fixed payment schedule
Amendments to the Mechanisms Funding the Stabilization Fund and Other Long-Term Liabilities	Potentially adjust the excess capital gains threshold prospectively on a one-time basis by between $300 M to $600 M, which was determined as a reasonable range based on actual economic and revenue growth since the threshold's establishment  Introduce a more dynamic methodology for adjusting the capital gains threshold (e.g., annual GDP growth, portion of rolling average of actual capital gains collections)  Consider the use of excess capital gains as a more recurring revenue stream for disaster relief and resiliency efforts, given the extraordinary rise in high-cost natural disasters