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Details about the size of overspends across Wales come as Cardiff and Vale and Betsi Cadwaladr university health boards are introducing restrictions on the use of agency and locum staff.
However, these are being partially offset by actions to redesign services which are expected to reduce the projected overspend to pounds 1.
Clr Palfreeman said it was not yet clear how much the overspend was, but thought it was in the millions.
An internal investigation has been launched in the city council about the overspend at Whitley Abbey comprehensive which has angered councillors.
A report from council corporate director Christine Salter says: "The projected overspend in directorate budgets and in particular the shortfalls against savings targets represent a continuing cause for concern.
Increased residential costs and the fact that several clients could no longer be invoiced for their care saw the mental health service overspend by pounds 181,000.
HEALTH authorities and trusts predicting overspends this financial year: # Bro Taf Health Authority - pounds 12.
The three PCGs covering Coventry north, east and west are facing a combined predicted overspend on the year's drugs budget of pounds 1.
The overspend on sugar is due to expensive export refunds prompted by low world market prices and an increase in exports at the start of the campaign.
During a cabinet meeting, Councillor Graham Hinchey was asked by Conservative group leader Dianne Rees what the long-term plan for departments that overspend was.
The overspend led to a special meeting this month between department chiefs, the council leader Phil Fowlie and portfolio holders for finance and social services.
And the overspend happened despite overall savings of pounds 818,000 on the budget.