  Three-dimensional Yang-Mills theory is investigated in the Hamiltonian
formalism based on the Karabali-Nair variable. A new algorithm is developed to
obtain the renormalized Hamiltonian by identifying local counterterms in
Lagrangian with the use of fictitious holomorphic symmetry existing in the
framework with the KN variable. Our algorithm is totally algebraic and enables
one to calculate the ground state wave functional recursively in gauge
potentials. In particular, the Gaussian part thus calculated is shown to
coincide with that obtained by Leigh et al. Higher-order corrections to the
Gaussian part are also discussed.
