REFILE-California governor signals key budget concession

* Schwarzenegger sees possible compromise

* Says budget talks moving fast (Refiles to insert dropped word "deficit" in 3rd paragraph)

SAN FRANCISCO, July 4 (Reuters) - Governor ArnoldSchwarzenegger, optimistic California can finish its budgetnegotiations in a few days, is willing to reconsider hisproposed cuts to education in hopes of averting a cash crisis,the San Francisco Chronicle said on Saturday.

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