In this installment of Fiscal Perspectives, Legislative Analyst Gabriel Petek discusses why, even with high budget reserve balances, it is prudent for the Legislature to continue assessing and strengthening the state’s fiscal capacity. The post also discusses how maintaining an operating surplus in the state’s multiyear budget plan can supplement reserves as an instrument of fiscal resilience. Petek makes the case that there is a particularly strong argument for doing so in the context of a mature economic expansion.