K-12 schools would be cut by an additional $680 million.
Schwarzenegger already has announced he would like a portion of that $3 billion savings to come from a 5 percent pay cut for more than 200,000 state workers.
The governor had said the state is facing a $21.3 billion dollar deficit for the fiscal year that starts July 1. But plunging tax revenue is likely to cause the shortfall to swell by $3 billion.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
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