What is the first step in the state budget process?

The first step in the state budget process is the preparation of the agency budget request. This stage is crucial as it involves various state agencies determining their financial needs for the upcoming fiscal year. During this phase, agencies must evaluate their programs, assess past expenditures, and align their budget requests with strategic priorities.

This initial request sets the foundation for the entire budgeting process, as it outlines the funding requirements necessary to maintain and enhance services provided by the agency. It is essential for agencies to justify their proposals effectively as these requests will eventually form the basis for discussions and deliberations at higher levels of government, including the executive budget preparation and legislative considerations.

Subsequent steps, such as the governor's budget office preparing the recommended budget, and the deliberations by the House and Senate finance committees, rely heavily on the information and rationale provided in these agency requests. Thus, understanding this first step is critical to grasping how the entire budget cycle develops in state government.