Which of the following is considered a principal step in the budgeting process?

The budgeting process involves several key steps, and legislative review and approval is critical because it provides the necessary formal endorsement of the budget. This step ensures that the proposed budget aligns with the legal and regulatory framework governing the jurisdiction and reflects the priorities set by elected officials. The legislative body, often a city council or county board, reviews the budget to assess its adequacy in meeting community needs and ensuring responsible fiscal management.

Once the budget is presented, it undergoes scrutiny, which allows for public input, amendments, and ultimately a vote for approval. This step is vital because it not only legitimizes the budget but also fosters transparency and accountability in the budgeting process. A budget that has gone through legislative review signifies that it reflects the collective interests and goals of the community.

Other options encompass important aspects of sound financial management, but they support or follow the primary legislative action. Performance monitoring, for example, deals more with tracking budget execution after approval, while financial review assesses past financial performance and planning for future budgets. Community outreach is essential for gathering input but occurs during budget preparation and is not a formal step in the approval process.