AUGUSTA (AP) – On the eve of a state forecasting panel’s review of revenue trends, the Baldacci administration told legislative budget writers Thursday an October dip still left the General Fund ahead for the fiscal year by $38.2 million or 5.1 percent.

“Taxable sales increased significantly in September, ending a two-month period of sluggish growth” and “retail sales analysts expect moderate growth in retail sales during the upcoming holiday season,” the administration said in its monthly report.

Anticipated sales growth in the range of 3 percent to 4 percent, however, would be below last year’s 5 percent growth, the monthly report presented to the Appropriations Committee said.

The administration memorandum distributed by Commissioner Rebecca Wyke of the Department of Administrative and Financial Services also offered some optimism on the home heating front.

“While home heating oil prices will remain well above last season, the recent moderation in oil prices should result in home heating oil prices coming down or at least not increasing further over the next few months,” the monthly report said.

The Baldacci administration will present a two-year budget plan to the Legislature in January. Revenue gains reported in the first months of the fiscal year that began July 1 have coincided with indications of budgetary imbalances within the Department of Health and Human Services.

Overall, the Baldacci administration has pegged the gap between spending demands and anticipated revenue at more than $700 million. The structural gap in the most recent budget cycle was in the $1 billion range.

Thursday’s Appropriations Committee meeting was the last scheduled session for the panel before a new Legislature is sworn in on Dec. 1. Two committee members, Senate Chairwoman Mary Cathcart, D-Orono, and Rep. Richard Mailhot, D-Lewiston, are leaving office due to term limits and a third panelist, Republican Rep. Julie O’Brien of Augusta, another fourth-termer, will depart after losing a race for a state Senate seat.

Two Republican representatives currently serving on the committee, Peter Mills of Skowhegan and Richard Rosen of Bucksport, will be members of the new Senate, as will Democratic Rep. Scott Cowger of Hallowell, one of six Democratic House members now on the committee.