New York City is inching closer to financial bankruptcy for the first time in over four decades as experts warn officials of massive public spending and decreased tax revenue as wealthy residents flee to other cities across the country.

“New York City is careening closer to all-out financial bankruptcy for the first time since Mayor Abraham Beame ran the city more than 40 years ago, experts say,” reports the New York Post.

“As tax-fleeced businesses and individuals flee en masse, and city public spending surges into the stratosphere, financial analysts say Gotham is perilously near total fiscal disaster,” adds the article. “Mayor Bill de Blasio is ramping up to spend as much as $3 billion more in the new budget than the current $89.2 billion.”

“The city is running a deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform,” added a leading economist. “New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.”

Read the full report at the New York Post.