Who typically prepares proposed budgets during the preparation stage?

• A. City council drafts the budget during preparation.
• B. Public input crowdsourcing is the primary method for prep stage.
• C. External auditors draft the proposed budget.
• D. Department heads and finance staff develop proposed budgets.

Answer: (D)

During the preparation stage, the budget is built by those who manage programs and oversee finances: department heads and finance staff. Department heads know what services and programs are needed and the resources those programs require, while finance staff analyze revenues, costs, and feasibility, consolidate requests, and draft the formal proposed budget. This collaboration produces a coherent proposal that reflects program needs, financial constraints, and policy goals, ready for review and approval by the council or city manager.

Public input and policy direction influence the budget, but they don’t typically draft the proposal themselves. The council sets policy and approves the final budget, and external auditors are responsible for examining financial statements, not drafting budgets.