The council has cited the increasing number of looked-after children as a key reason for rising costs.
Chief executive Nigel Pursey said: "As the body responsible for these children it is vital that the level of service continues."
Proposals for balancing the books include a 1m reduction in the children and lifelong learning budget, a transfer of 1m from adult and other social care and health services, a 1m allocation from the council's contingency fund, and a review of how a residual 500,000 funding deficit will be managed.
A detailed plan of how the savings will be achieved will be submitted to the cabinet in June.
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