“Buy a soda, save a school”,” that’s a slogan Sue Cleveland, the superintendent of Rio Rancho Public Schools, says is being heard throughout the district.

“A soda tax is not a bad way to go,” Cleveland said. “No one loves Diet Coke more than I do. I’m willing to pay 15 cents more for it. I like it. It’s one small thing to generate things for the school”

The school district is bracing for possible cuts in its funding from the state, as the New Mexico State Legislature tries to shore up a reported $700 million deficit. Cleveland said one possible way to raise revenue would be to implement a soda tax.

State Rep. Jack Thomas (D-Rio Rancho) told the board he was in favor of a tax on sodas.

“A nickel on a can of Coke will help all people who live in New Mexico and certainly the people in Rio Rancho,” Thomas said. “We need to have someone stand up and say this is the right thing to do.”

Gov. Bill Richardson, however, has been adamant against any tax increases.

In addition to the governor’s opposition, State Sen. John Arthur Smith (D-Deming), who chairs the Legislative Finance Committee, said a soda tax wouldn’t generate enough money.

“Any tax imposed would not generate enough revenues until April or May to take care of 2010,” he said. “It’s not enough money to wad a shotgun.”

Thomas sounded grim when he addressed the RRPS board regarding the special session, which began yesterday.

“I wish I could bring you some good news, but I’m not,” he said. “My personal opinion is we shouldn’t cut education. I didn’t lead us into the bog, but realize we are in a bog.”

Smith said revenue problems were forecasted four years ago.

“In 2005, the LFC, anticipating a structural deficit, advised to hold back spending,” he said “Unfortunately, a number of legislators and the governor went full speed ahead. There was far too much spending.”

Smith said he amplified warnings to rein in spending 1-1/2 years ago when oil and gas prices began to fall. He explained that for each 10-cent drop in natural gas prices, that’s $12 million of revenue lost for the state.

In June of 2008, natural gas was trading for $10.82. Today, it trades for roughly $4.

In addition to natural gas revenues falling, tax revenue has also fallen, Smith said.

Smith pointed out that outside of Rio Rancho, there has been virtually no growth in student enrollment. However, the budget for education has increased by 57 percent.

Smith said it would be difficult to balance the budget without every department taking a cut. He also said it would be less difficult for departments to make the necessary cuts if they know about them in advance.

“The later you delay notifying them then the fewer months they have to make up the difference,” Smith said. “The longer we linger, the more difficult it will be for education to adjust.”

Smith warned that sparing education would cause problems in other parts of state government.

“The magnitude is so large that if we hold education harmless, we’re taking police off the highways, shutting down some senior services and trimming back on nursing homes,” he said. “If you hold education harmless, all those candidates better not be campaigning at senior centers or nursing homes.”

Smith said he would prefer an across-the-board cut.

“It will get us over the hump and everyone will share some of the pain,” he said. “Everyone has shared in the windfall.”

Thomas projects the cuts to be around two percent.

“Education has a lot of friends in the House of Representatives,” he said. “I don’t think 10 percent is going to happen. If there are any cuts, it will be closer to two percent.”

He reiterated to the board his desire to spare education, but also acknowledged the reality of the deficit.

“I’m against cuts in education,” Thomas said. “When I go up there on the 17th, I need to have some latitude on this position. The numbers keep going up and the revenues keep going down.”

Board member Divyesh Patel said any reductions should be a straight cut.

“One thing I’d like to request is whatever New Mexico decides, it should be fair and equitable,” he said. “They should not take anything that would harm a category. The percentage cuts are better than going after certain line items that would only affect a certain district.”

Board President Don Schlichte is concerned with Rio Rancho losing growth money.

“We have a couple million dollars of growth money coming in for us,” he said. “If that money’s halted then that’s an inequitable situation. If they grab the growth money, that’s an inequitable reduction.”