A further £41.5m of cuts and savings will have to be found at Norfolk County Council next year - and council chiefs are unable to rule out reducing services for the public.
Andrew Jamieson, deputy leader at County Hall and cabinet member for finance, warned "tough decisions" would have to be made including particular pressure on adult social care and children's services.
The Conservative-run council has had to find millions of pounds of savings in recent years, and has just started the process which will lead to millions more in 2026/27.
Mr Jamieson said the need for more savings would edge the authority nearer to affording only services the council is legally obliged to provide.
Officers, in a report which will come before the council's cabinet on Tuesday (May 6), state: "The size of the budget gap forecast for 2026-27 is such that there is a risk that the council will be obliged to consider reductions in service levels."
Mr Jamieson said: "In broad terms, we are having to look at finding another £41.5m of savings, and that figure would have been higher if we had not had our transformation programme.
"But £41.5m is still a very significant figure, particularly as we fear we are not going to get any additional help from the government in terms of an increase in public spending.
"We still deliver above and beyond what we are statutorily required to provide in a number of areas.
"But there's no doubt that we may have to look at those still further.
"I am hoping that could be addressed through efficiencies, rather than by curtailing services."
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The start of the budget setting process at County Hall, which also assumes a 2.99pc hike in the authority's share of the council tax, comes at a time of flux for Norfolk's councils.
All eight authorities are facing abolition under local government reorganisation.
That process would see new unitary councils created, and Mr Jamieson believes a single council would be the most cost-effective model - a view not shared by the district councils.
The council is also considering extending its medium term strategy, over which it has identified a need to save £171.4m by a further year, to 2029/30.
Political opponents said that was "kicking the can down the road" for savings and potentially to other councils.
But Mr Jamieson said: "I would dispute that. I would say that making £41.5m of savings in the coming year will still mean we are making tough decisions."
What has the council cut so far?
Recent years have seen the council trying to save money by focusing on prevention, rather than costly residential care, within adult and children's services.
But disabled people were also targeted, with the authority changing a policy so people had to pay more for their care.
The council looked to cut costs by closing recycling centres on Wednesdays, bringing in a controversial booking system for tips and switching off thousands of street lights.
What do political opponents say?
Brian Watkins, leader of the opposition Liberal Democrat group at County Hall, said: "Every year this council is forced to make substantial savings to cover its deficit, this practice is completely unsustainable and threatens our vital services.
"The latest figure of £41.5m in savings is deeply worrying and will surely be met with concern from those who rely on our services to live fulfilled lives."
Steve Morphew, leader of the Labour group, said: "The county council can do so much better. Residents are being let down.
"Vast sums on consultants, initiatives with fancy names but no substance, and accountancy tricks to push the burden onto new councils after the upcoming reorganisation.
"Much as we need more government support, there is no escaping the Conservatives have failed to get a grip and are kicking the can down the road."
Dr Catherine Rowett, Green group leader, said: "The ongoing problems of underfunded public services, including services that the county council are obliged to provide, reflects the unacceptable inequality of wealth and opportunities both in Norfolk and in the UK generally, which is continuing to get worse under the so-called Labour government, after so many years of Conservative cuts.
"The Conservative administration has choices that it can make, and I hope it will seek to ensure the most vulnerable communities are not losing resources they most rely on."
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