Front-line services are facing cuts of up to £10 million to plug a hole in local authority funding.
Transport, social services and waste disposal could be among the casualties as West Sussex County Council faces up to what officials believe is one of their worst grant settlements from the Government.
The fire brigade faces streamlining, councillors have warned, while help for the elderly and support for people with mental health conditions and learning disabilities could suffer.
Steve Waight, Cabinet member for finance and resources, told colleagues on Tuesday they will receive the minimum of increases for the fifth consecutive year - leaving the council almost £3 million worse off than last year.
Coun Waight said the impact was likely to be a £8 million to £10 million cut, with front-line services "taking a hit".
After the meeting, he said:
"In terms of a grant for schools we have done reasonably well.
"However, for other council services we are faced with yet another very disappointing settlement despite the fact that we are an effective council in terms of delivering services, and have made efficiency savings over and above Government targets.
"I warned the Cabinet that unless there is a change of heart at Government level, which I certainly do not expect, we will have to make reductions in some services.
"The challenge will be to ensure they have the least possible impact on the people we serve."
Coun Waight noted that, for the fourth year in succession, an extra one-off national payment of £305 million had been announced, at the eleventh hour, to keep council tax down.
However, councillors said they were still being treated unreasonably and under compensated, with funding being switched from the South East to the Midlands and the North.
They concluded that the "future funding prospects for the county are bleak".
Coun Waight will recommend the years budget and council tax at the next meeting of the Cabinet on Tuesday, January 31.
A final decision will then be taken by full council three weeks later.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article