AUGUSTA – As state forecasters prepare for an avidly awaited review of revenue trends, the latest monthly report from the King administration could give them – and the budget writers in the Legislature who depend on their findings – cause for concern.

Most notably, administration finance officials this week cite weak December 2000 sales – so weak they actually were below the level of December 1999.

The year-end softness was measured in nearly all economic sectors. Some flattening of sales was said to have dated back months.

“Consumers in Maine, like most of the nation, have clearly pulled back during the second half of calendar year 2000,” Commissioner Janet Waldron of the Department of Administrative and Financial Services wrote in her report for January.

“Durable good sales were either flat or, in the case of automobile sales, fell during the last quarter of 2000. Holiday shopping during December was very disappointing with overall taxable sales declining by 4 percent over last year,” Waldron wrote.

Through January, which wound up the first seven months of the current fiscal year, overall General Fund revenue was pegged at $12 million, or 1 percent, over budget at nearly $1,275,000,000.

During that period, however, sales tax revenue was about $11 million, or 2.4 percent, under estimate at about $446,780,000.

Actual sales tax revenue for January was $7.5 million, or 9.4 percent, under budget for the month and $8.3 million, or 10.4 percent, less than January 2000.

In reporting the January-to-January comparison, officials noted that Maine’s general sales tax rate was reduced from 5.5 percent to 5 percent on July 1, 2000.

Individual income tax revenue was $27.1 million, or 17.3 percent, over budget for the month of January, putting the personal income tax line ahead by $27.9 million, or 4.5 percent, year-to-date.

Even there, administration officials offered cautions.

“Approximately $9 million of the positive variance of the individual income tax line is attributable to revenues budgeted for February,” Waldron wrote.

“It is also anticipated that some of the income tax surplus is due to reports that some taxpayers deferred December income to January, given potential tax cuts at the federal level.”

The administration report comes on the eve of new deliberations by the state’s Revenue Forecasting Committee, made up of experts inside of and outside state government.

The forecasting panel, which sets revenue projections used by budget writers, is due to update its estimates by March 1. Ranking lawmakers have suggested a major budget bill to detail spending over the two-year cycle that begins July 1 should be enacted by the middle of March.

Thus far, members of the new Legislature have enacted one emergency spending package with relative ease. That modest $8.8 million package for the current fiscal year, however, was stripped of its most controversial elements to guarantee accelerated treatment.