Suspended FCPS budget director files lawsuit against Superintendent Liggins, board

Suspended Fayette County Public Schools Budget Director Ann Sampson-Grimes on Wednesday filed a lawsuit against the district’s superintendent and the school board, claiming she was placed on leave because she repeatedly alerted her bosses last year that the district’s financial state was flailing and would worsen in 2025.

The lawsuit filed in Fayette Circuit Court said Superintendent Demetrus Liggins thwarted Sampson-Grimes from reporting potential waste and mismanagement of district money.

Staring at a $16 million deficit, FCPS is currently in a budget crisis with increased calls for a forensic audit to be conducted.

Sampson-Grimes holds the position of executive director of Budget and Financial Planning for the 2025-2026 school year. The five-year FCPS veteran has been placed on administrative leave with pay.

In her lawsuit, Sampson-Grimes seeks undetermined compensatory and punitive damages, to be reinstated to her post, and to not be subjected to further harassment discrimination or adverse actions by her superiors.

“It is very evident from Superintendent Liggins’ statements that he continues to not acknowledge the warnings my client advised he and his staff of regarding the district’s finances,” Sampson-Grimes’ attorney Brandon Voelker told the Herald-Leader Wednesday night.

“(Liggins) asserts that the financial warnings were unknown, and an investigation is needed. My client’s complaint establishes this is inaccurate. The wrongful placement of my client on administrative leave has left her with no other option.”

FCPS officials would not comment on the lawsuit, district spokesperson Miranda Scully said Wednesday night.

Sampson-Grimes’ lawsuit accused Liggins of “gross intentional conduct meant to punish” her and preventing her from “lawfully reporting potential mismanagement and/or waste” of FCPS funds.

On Aug. 27, Voelker sent Liggins and board chair Tyler Murphy a letter detailing some of the same claims that are in the lawsuit.

The lawsuit alleges, in part:

“The Fayette County Public School Board requires a minimum contingency of 6%, although under state law, the minimum contingency is only 2%. Throughout 2024 and 2025, Sampson-Grimes consistently and frequently advised that budget cuts must be implemented to comply with board policy and meet the 6% contingency minimum.

“While Sampson-Grimes’ advice was made mandatory as a result of her employment contract, district leadership, including Liggins, refused to comply, and instead told her that a request to change the policy would be issued to the board.”

In the lawsuit, Sampson-Grimes said each time she made recommendations, “her peers and superiors pushed back, claimed she was incorrect, or flat-out ignored her advice, which led to several instances where she was retaliated and/or discriminated against.”

On Feb. 13, 2024, Deputy Superintendent Houston Barber, then Sampson-Grimes’ boss, told her the budget needed to be reduced by 5 percent. She told him more cuts were required.

The lawsuit alleges Barber refused to permit the required reductions to the tentative budget, even though he had previously acknowledged the need for, at minimum, a 5% cut.

Then, in fall 2024, Barber told Sampson-Grimes the working budget would not set forth the required cuts, because Liggins required a new contract and board member elections were looming, the lawsuit says.

“On July 1, 2024, Sampson again informed Dr. Barber that reductions for the 2025 fiscal year were necessary. Sampson-Grimes told Finance Director Rodney Jackson and Barber that the fund balance was going to be much lower than anticipated, and that it was necessary to take action to reduce the budget.

“Barber told her that she was not to say that cash flow was going to be an issue and further directed her not to speak of the issue publicly. Sampson-Grimes told him should spending not be reduced, the district would fall below the board policy of 6 percent, as well as the state minimum 2% contingency, and eventually be under state management,” the lawsuit alleges.

On July 31, 2024, Barber again told her not to tell the public that cash flow was an issue for the district.

On Aug. 13, 2024, her employment position was split, diminishing her decision-making power. On Aug. 26, 2024, Sampson-Grimes again informed Barber that budget cuts of at least 10 percent or more had to be made for the 2025 fiscal year, the lawsuit says.

On April 17, 2025, Sampson-Grimes emailed Liggins to advise that significant reductions in the budget would need to be made for the 2026 fiscal year, thus predicting FCPS’ current financial position.

Also in the lawsuit:

On April 23, 2025, she informed both Barber and Jackson that expenditures were outperforming revenues and federal funds may be decreasing.

On May 2, 2025, in a meeting between Barber, Jackson and Sampson-Grimes, she was effectively prevented from suggesting to the board that further budget cuts may be a suitable method in order to effectuate the board’s desired 1 % raise for teachers.

She said more cuts were needed beyond a proposed $8.9 million.

“Instead, Barber and Jackson reported that the only way to achieve the 1 % raise was through a boost to the occupational license tax,” the lawsuit alleges.

Following the 2026 fiscal year tentative budget meeting on May 5, 2025, where Sampson-Grimes, Barber, Jackson and Liggins discussed the budget in detail, she e-mailed Barber, Jackson, and Liggins on May 9, 2025, to say additional reductions need to be made to balance the General Fund Budget.

“On May 19, 2025, she informed Barber that she lacked the authority to add the tax increase because it was not yet an approved revenue source (by the school board) and, in turn, Barber told her to keep that information confidential,” the lawsuit says.

On Aug. 13, 2025, she was told by Barber that there would be a further restructuring due to a “leadership issue,” and members of her team would no longer report to her but directly to Jackson. However, Sampson-Grimes would still be required to perform the same job responsibilities.

Sampson-Grimes was “being set-up for failure without her team,” the lawsuit said.

In her lawsuit, Sampson-Grimes said she had received “exceedingly positive reviews with no prior or current complaints.” “(The) plaintiff believes and firmly alleges that the motivation for the retaliation she suffered was due to her fervent recommendation of budget cuts in order to keep the district within its own contingency limitations and those prescribed by state law,” the lawsuit said.

“The retaliation and/or discrimination against Plaintiff culminated in August of 2025, when she was placed on administrative leave,” the lawsuit said.

The reason provided for placing Sampson-Grimes on administrative leave was “alleged inappropriate conduct (of a non-sexual nature),” according to a letter the Herald-Leader received under the Kentucky Open Records Act and the lawsuit.

“This reason has not since been expanded upon in the time (Sampson-Grimes) has been on leave, nor has (she) received a legitimate reason for her leave aside from the vague accusation posited in the letter,” the lawsuit said.

The lawsuit said Sampson-Grimes informed Human Resources that she was being harassed by Barber when Human Resources called to inform her of her administrative leave. The district’s legal department contacted her on Aug. 19, 2025, to take her complaint, but she informed them that she was not comfortable making such a complaint without legal representation.

This story was originally published September 10, 2025 at 6:13 PM.