ALLENTOWN, Pa. – Allentown has started the new year without a budget approved by City Council.

In the Allentown City Council meeting on Dec. 17, council members officially passed a budget, but it didn’t include the roughly 4% real estate tax increase Mayor Matt Tuerk had proposed.

“City council attempted to amend that budget in a way that was fiscally irresponsible. I vetoed that,” said Tuerk.

Vetoed because Tuerk said it would be too hard for the City to pay its bills.

“The cost… of road salt is higher in 2026. The cost of pool chemicals is higher in 2026,” said Tuerk.

So council met again last Tuesday, this time to try to override the Mayor’s veto and pass the budget anyway. Councilman Ed Zucal laid out the stakes.

“It’s very clear in subsection 807 section C that the council and the Administration must come to an agreement for the budget. Therefore, if this fails, you will enter 2026 basically as the State and the Federal government did with no budget,” said Zucal.

The vote to override Tuerk’s veto did end up failing by one vote. Zucal asked the solicitor what’s next.

“Will anyone get paid in City Hall?” asked Zucal. “I wouldn’t see how, because there’s no funding.”

But Mayor Tuerk said he’s not going to let City employees go without a paycheck.

“The City of Allentown is not going to shut down. Paramedics will show up, firefighters will show up,” said Tuerk.

We spoke with Zucal over the phone. He believes that could have major consequences.

“[Tuerk] normally doesn’t follow the rules, so I’m not surprised about that, but my sources tell me that, if he does that, there is a plan to reach out to the Attorney General’s office,” said Zucal.

But there’s also a chance the two new members of City Council who were just elected, Cristian Pungo and Jeremy Binder, might help pass the Mayor’s original budget once they’re sworn in. Zucal said he thinks that’s the likely outcome.

“Unfortunately, in the New Year he will convince the new Council to vote on it again, and unfortunately the citizens of Allentown will be stuck with almost a 4% tax increase,” said Zucal.

So, long story short, the City website still says they only have a “proposed” budget, but the Mayor said people will still be paid based on his original budget proposed back in October, and only time will tell if that brings any legal consequences.