Description: Reserves allow the state to ensure stable funding for its services over time, even when revenue fluctuates unpredictably. Over the last few years, the state has indeed experienced significant fluctuations—large surpluses followed by significant deficits. This volatility has prompted interest in changes to the state’s reserve policy. In this report, we assess proposed changes by the Governor to the state’s reserve policy and put forward our own recommendations that would allow the state to save enough in reserves to be able to afford its core service level over the long-term.