Slide 16 of 84

The budget provides mechanisms and frameworks for expenditure control. Legal limits are set on the amounts that may be spent for programs. These limits are built into the state's payment system. No payments may be made from the state treasury without some form of spending authorization. Authorizations usually take the form of appropriations. But some payments that go out of the state treasury are not subject to the budget process. Examples are income tax refunds and retirement benefits. Appropriations are not required for these payments to be made.