‘Ignored warnings.’ Six key takeaways from FCPS’ budget director’s lawsuit

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.

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.

Here are six key takeaways from the lawsuit:

1. Retaliation allegations

Sampson-Grimes claims she was placed on paid administrative leave in August 2025 as retaliation for repeatedly warning district leadership that FCPS finances were deteriorating and would worsen in 2025–2026. She argues her superiors tried to silence her rather than act on her warnings.

2. Accusations against leadership

The lawsuit alleges Liggins and Deputy Superintendent Houston Barber prevented her from lawfully reporting potential financial waste and mismanagement. She claims Barber even instructed her not to publicly mention cash flow issues or budget shortfalls.

3. Budget crisis context

The district faces a $16 million deficit and growing calls for a forensic audit. Sampson-Grimes contends she repeatedly pushed for budget cuts to prevent FCPS from falling below the board’s 6% reserve policy and the state’s 2% minimum contingency, risking state takeover.

4. Pattern of ignored warnings

From February 2024 through spring 2025, Sampson-Grimes alleges her recommendations for budget reductions were ignored, dismissed, or blocked. She says this left the district unable to balance its general fund without relying on new, unapproved revenue sources, such as a proposed occupational license tax increase.

5. Retaliatory restructuring and harassment

The lawsuit claims her role was gradually stripped of authority through internal restructuring, setting her up to fail. She also alleges discrimination, harassment, and retaliation culminating in her removal, despite strong performance reviews and no prior complaints.

6. Relief sought in lawsuit

Sampson-Grimes seeks reinstatement, compensatory and punitive damages, and protection from further discrimination or retaliation. Her attorney argues that her administrative leave was wrongful. He says Liggins is inaccurate when he says he did not know about her warnings.

Editor’s note: This article was compiled with the help of AI tools and written and edited by Herald-Leader journalists.