Which of the following is NOT a step in the budget formulation process?

The preservation of agency independence is not considered a step in the budget formulation process. In the context of budget formulation, the process typically involves several structured steps that ensure the effective allocation of federal funds. This includes analyzing agency requests by the Office of Management and Budget (OMB), preparing agency budget requests, and ultimately the submission of the President's budget to Congress.

Maintaining agency independence, while important for the overall functioning of government agencies, does not directly pertain to the procedural steps involved in formulating a budget. Instead, the budget formulation process focuses on how budgets are created, reviewed, evaluated, and presented at the highest levels of government, not on the independence of agencies in the execution of their functions.

Thus, the correct answer identifies a concept that is more about governance and oversight rather than a procedural step in the specific budget formulation process encountered in federal budgeting.