East Sussex County Council's Cabinet has recommended the one-off fund and the proposals will now go to the council's full meeting on February 9 for final decision.
However, council bosses are warning that this could be the last year the county council has any extra money, over and above its normal budget, to spend on its key priorities.
Deputy Leader Tony Reid said, "We want to use any additional resources we have in the best way possible and due to careful budget management in the last financial year, we're able to recommend this one-off fund. If agreed, it will mean cash for pot hole repairs following the recent severe weather, more money to help residents and businesses fight the effects of the credit crunch, funding to help cover the Government's proposal of free personal care for some elderly people and more cash for vulnerable children following the Baby Peter case.
"However, this could be the last year that we have this flexibility. Because of the effects of the recession and the expected squeeze on public sector funding, the financial outlook for the county council looks extremely bleak, particularly beyond this coming financial year."
The extra money for 2010/11 recommended by Cabinet includes:
• An extra £1m to mend pot-holes caused by the recent bad weather
• £900,000 to support the increase in referrals in children's services following the Baby P case.
• £750,000 to support the introduction of free personal care if that scheme comes into place • A further £250,000 for the recession fund to help residents and businesses to fight the effects of the credit crunch.
• £250,000 to support different ways of delivering services and working more closely with councils and other partners. This figure includes £50,000 earmarked for web initiatives that will make it easier and cheaper for residents to access services online.
Residents can find more information about the Cabinet Committee and other council meetings, and watch main council meetings live online at www.eastsussex.gov.uk