One other methodology that has been done in the past is Warrents. The State in the past actually paid employees not with a check (either electronic or paper) but with a warrent. The State could and did declare that the "Value" of the warrent could be less than face value, i.e., 90 cents on the dollar value posted/written. I beleive it was 1969 was the last time that happened.

Sure would piss off a lot of Unions.