The plaquette expansion, a general non-perturbative method for calcula
ting the properties of lattice Hamiltonian systems, is established up
to the first two orders for an arbitrary system. This method employs a
n expansion of the Lanczos coefficients, the tridiagonal Hamiltonian m
atrix elements or equivalently the continued fraction coefficients of
the resolvent, in a descending series in the size of the system. The c
oefficients of this series are formed from the low order cumulants or
connected Hamiltonian moments. The lowest order approximation in the p
laquette expansion corresponds to a gaussian model which is a conseque
nce of the central limit theorem. The first nontrivial order yields a
model with a spectrum on a bounded energy interval, becoming asymptoti
cally uniform in the thermodynamic limit.