Budgeting is a central activity in state government, and annual or biennial appropriations are the most important recurring decisions made by state legislatures. Gubernatorial recommendations reflect state agency program needs and portray the policy priorities of the chief executive. Legislative appropriations determine which agency programs, gubernatorial policy initiatives and legislative constituencies receive financial support. Budget execution decisions by state agencies determine how the policy decisions of the governor and legislature are actually implemented. In short, state budgeting determines how much money will be available for state spending, which policies will be initiated and implemented, and whose social and political values will prevail in state governance.

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