Faced with a possible temporary lay-off of 426 employees, the Cambridge City Council took one step toward approving a supplemental budget request from the Cambridge School Committee last night.

The Council voted 5-4 to request the city manager to submit a loan authorization for $919,000 to cover higher than expected heat, security and staff costs for the school department and allow the schools to continue normal operations through the end of the year.

But proponents of the loan authorization will have to find a sixth vote in favor of the proposal by next week, when the manager will return to receive final approval of the borrowing plan.

School Superintendent William Lannon told the council last night that if the funds are not approved, the school department will be forced either to cancel the last nine days of classes or lay off 382 regular and 46 substitute employees.

The council voted down attempts to halve the loan authorizations and to specify cuts in administrative salaries as a condition for the supplemental budget.

Cambridge Mayor Francis H. Duehay '55, who also serves as chairman of the school committee, said after the meeting that he is confident a sixth vote in favor of the plan will be found before the next meeting. "To turn down this request would send the entire school system into chaos, and I just don't think the council will do that," Duehay said.

Of the four councilors who voted against the loan plan last night, Saundra Graham appeared most likely to switch her vote. Graham said last night that she would demand evidence that the school department was willing to sacrifice before she voted for the package.

"We've all got to be willing to bite the bullet," Graham said.

Lannon, who will submit a budget for the next fiscal year tomorrow, said yesterday he would slash spending to hold that budget below the statemandated four-per-cent increase.

Running Regressions

Sixty to 70 teachers will lose their jobs under the new budget and "some entire programs will be cut," Lannon said. "I've spent the last three days undoing everything I've ever done here," Lannon said.

City Manager James L. Sullivan, who must now work out the request for the loan authorization, argued against granting the supplemental budget last night.

Borrowing to cover the cost of the deficit would lower the city's bond rating from AA to A, which would cost the city thousands of dollars in interest on current bond issues, he said.