The Hannemann administration's $1.8 billion executive operating budget has stalled in the City Council following a disagreement on whether the Council should provide funds for vacant city and county jobs.

But Council Chairman Todd Apo said the dispute is not expected to delay final passage of the budget.

“;I think we all knew this was going to be a tough budget,”; Apo said. “;We'll get these things worked out.”;

The Council has until its June 9 meeting to approve the final budget that goes to Mayor Mufi Hannemann for consideration.

By a vote of 4-3, with two members absent, Bill 15 failed late Wednesday to get the five votes needed to advance on the second of three required readings.

The budget bill remains with the Council until its May 12 meeting. Assuming it passes second reading at that point, it would then go back for its final hearing in the Budget Committee before coming back to the Council for third reading June 9.

At issue was a floor draft by Councilman Ikaika Anderson proposing to eliminate money for vacant funded positions that had not been filled as of July 1, 2009.

City department heads argued that funding for the vacant positions is needed, to allow flexibility in hiring to meet the city's needs.

Anderson said the proposal aimed to maintain the current size of government at a time when county workers were facing furloughs of two days a month. The plan would have saved an estimated $15 million, according to his staff.

“;We'll be able to have the appropriate discussions and get that vote in May,”; Apo said.

By May, Council members should have a clearer idea of how much money they are chasing.

Wednesday's vote followed seven hours of testimony from dozens of individuals who urged lawmakers to maintain funding levels for programs such as Summer Fun and the Royal Hawaiian Band.

Budget Chairman Nestor Garcia spared those programs the ax for now but said he might revisit the proposed cuts if the city's budget situation worsens.