(1) It is declared to be the policy and intent of the Legislative Assembly that:

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(a) The legislatively adopted or approved budget for a state agency constitutes a determination by the Legislative Assembly of the amount needed by the agency for the biennium to meet the responsibilities imposed on the agency through the budget and through statutes governing the agency; and

(b) Except as provided in subsections (2) and (3) of this section, appropriations from the General Fund to a state agency constitute a direction to the agency to spend the amount of moneys appropriated in order to meet the responsibilities imposed on the agency through the budget and through statutes governing the agency.

(2) If a state agency does not need all of the moneys that are made available to it by the legislatively adopted or approved budget to meet its responsibilities, the agency need not spend all moneys appropriated or otherwise made available to it.

(3) The Governor and the Oregon Department of Administrative Services are given the powers granted by ORS § 291.201 to 291.222 and 291.232 to 291.260 in order that the Governor and the department might effect savings, without reducing the responsibilities imposed on state agencies, by:

(a) Careful supervision throughout each biennium, with due regard to changing conditions; and

(b) Promotion of more economic and efficient management of state agencies. [Amended by 2003 c.734 § 11]