AUGUSTA – Wary state fiscal officials are watching revenue collections closely this week as the end of the fiscal year approaches.

At one point there were concerns that both the General Fund and Highway Fund would finish in the red. On Thursday, worries remained that adjustments would be needed to keep the Highway Fund in balance.

“General Fund revenue looks like it will have a small revenue surplus,” said Grant Pennoyer, director of the Office of Fiscal and Program Review. “However, the Highway Fund is facing a revenue shortfall as the end of year draws to a close.”

The Highway Fund had a revenue shortfall of $4.4 million at the end of fiscal year 2006, Pennoyer said.

Gov. John Baldacci’s top financial adviser, Commissioner Rebecca Wyke of the Department of Administrative and Financial Services, said officials were monitoring developments.

“Sounds right,” she said of Pennoyer’s summary.

The new fiscal year begins July 1 and the Legislature’s Office of Fiscal and Program Review recently gave legislative leaders a briefing paper indicating that General Fund revenue was under budget by $1.5 million in May, bringing a year-to-date deficit to $6.6 million, or minus 0.3 percent.

Indications are that General Fund collections have been catching up, officials said.

“In terms of Highway Fund, we’ll have to do some transfers,” Wyke said.

Wyke said she did not expect a Highway Fund shortfall this year to be as large as the one a year ago.

In March, the state’s Revenue Forecasting Committee said General Fund revenue for the rest of the current fiscal year, which ends June 30, would be almost $34 million less than expected. At the same time, the panel reduced its revenue forecast for the subsequent two years by another $40 million.

The downward adjustments were attributed largely to poorer than anticipated corporate tax receipts.

Then in May, responding to a more-favorable-than-expected performance on the individual income tax line, the forecasting panel increased General Fund revenue estimates by $17.8 million for fiscal year 2007 and by an additional $1.5 million for the 2008-2009 biennium.

A monthly review from Pennoyer’s office noted that the forecasting panel in May made no recommendations for changes in Highway Fund revenue.

But the review went on to say, “Some members expressed concern about the gasoline tax, which had been running under projections. The increase in gasoline prices in recent months and seasonal supply issues may drive gasoline prices higher and curb consumption, reducing revenue further.”

In February, lawmakers overwhelmingly affirmed a unanimous Appropriations Committee deal on a $127 million supplemental budget bill for the current year.

The bulk of the bill earmarked money for health and human services, including funding for hospital payment settlements and Medicaid program shortfalls.

The measure, designed to cover unanticipated state government costs through June, passed in the House of Representatives on a vote of 138-5 and was approved 34-0 in the Senate.

Earlier this month, Maine lawmakers enacted a $6.3 billion biennial budget package, setting spending priorities for the next two years and mandating sweeping changes in how school administrative systems have been organized for decades.

Final passage in the House of Representatives came on a vote of 112-29. The Senate followed suit, 28-7.

The biennial budget covers the two years beginning July 1.