The first step in developing a budget is to:

• A. Call other agencies and use their budget figures
• B. Plan your projected costs
• C. Submit a cost estimate to the city record for a cost breakdown
• D. Find out what money is available

Answer: (B)

In budgeting, you begin by outlining what you plan to spend. This means identifying programs, activities, and resources and then estimating the dollar amount needed for each item based on past spending, expected changes, and upcoming plans. This step creates the financial requirements and sets a baseline for the entire process; you can’t determine funding needs or prioritize resources accurately until you know what you expect to spend. Once the projected costs are known, you can compare them to the funds available, identify gaps, and then move on to securing or allocating money, justifying the numbers, and preparing any formal submissions.