Emails show suspended FCPS budget director warned of needed cuts

Emails obtained from Fayette schools under the Kentucky Open Records Act confirm the district’s budget director’s claim she told her superiors that the budget needed to be cut.

“Additional reductions need to be made,” Ann Sampson-Grimes, now suspended, said in an a May email to her bosses. “

In a separate Aug. 1 email, Grimes added: “Expenditures for the current fiscal year will require significant reductions.”

On Friday, the Herald-Leader received emails the newspaper requested under the Kentucky Open Records Act, asking specifically for correspondence that referenced Grimes and the contingency fund for fiscal year 2026.

In a lawsuit filed Sept. 10 against Superintendent Demetrus Liggins and the school district, Sampson-Grimes claimed 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.

Cuts were needed, she insisted.

District officials have previously had no comment on Sampson-Grimes’ lawsuit.

She was initially placed on administrative leave Aug. 15. ‘

The reason provided for placing Sampson-Grimes on administrative leave was ‘alleged inappropriate conduct (of a non-sexual nature),’ according to a letter from Superintendent Demetrus Liggins to Sampson-Grimes

Sampson-Grimes’ administrative leave with pay has been extended another 20 working days, her attorney Brandon Voelker said Sunday.

“For the past 20 days, my client has been wrongfully removed from her position,” he said. “The district has done nothing for the past 20 days other than to seek to create a false narrative while seeking to silence my client.

“The recent actions only confirm my client has no other choice than to seek redress under the Kentucky Whistleblower statute for reporting the mismanagement of the district.”

Voelker said he had asked that Sampson-Grimes get a meeting with school board members, but the school board’s attorney had not arranged a meeting.

In a May 9, 2025 email Grimes wrote to Deputy Superintendent Houston Barber, Liggins and Financial Director Rodney Jackson, “I think we should add back on slide #14 the $16 (million) in red by the General Fund because the General Fund is not actually $699 (million) because additional reductions need to be made to balance it.”

That email, mentioning a $16 million budget shortfall, was referenced in the lawsuit.

The district’s Budget Solutions Work Group working to address a projected $16 million budget shortfall made recommendations July 29, including reducing the district contingency fund from 6% to 4% of the total general fund budget or take the full $16 million out of the contingency fund.

The work group members were under the impression the contingency was about $42 million.

A July 31 email from Jackson to Sampson-Grimes and Barber said, “We need to be mindful that we may already be into the contingency amount as expenses outpace revenues, and we will not know the extent of it until mid to late August as we analyze the impact of expense and revenue accruals, the funds owed by Food Service, retirement penalties, etc. “

Barber replied: ”Agree, please work to include all those factors.”

On Aug. 1, 2025, Sampson-Grimes sent Jackson and Barber an email saying that in order for the fiscal year 2026 (which began July 1) to be balanced, significant reductions would be needed.

The email said:

“Dr. Barber - Have there been discussions with the Budget Work Group and Board on the potential reduction in fund balance for the FY26 Working Budget projection? How do we best ensure the Budget and Finance Committee is included in this work as well?”

She added: “A cursory set of scenarios based on the Budget Work Group suggestions (i.e. 2%/4%/$16m contingency adjustment, etc) that you and I reviewed during the meeting on July 29th has been posted here. These scenarios were generated based on the FY26 Tentative Budget package and expenditures for the current fiscal year will require significant reductions going in the FY26 Working Budget to balance.”

The “email is consistent with many warnings she gave,” Voelker said.

On Aug. 10, Liggins wrote to board members that the carry-over balance, or true contingency, would be much lower, possibly $15 million to $22 million.

In an Aug 12. email, school board member Monica Mundy asked Liggins why the carry-over balance was so much lower than anticipated.

Liggins responded: “I would say that we knew and communicated that the carry over would be down, but we did not know the amount until the end of the fiscal year when we could begin the reconciliation process.”

“Is the district ‘in the black’?”, Mundy asked.

“Yes,” Liggins said, “the district is operating ‘in the black’ in that revenues, including carry-forward balances, exceeded the legally required 2% reserve. However, the gap between revenues and expenses has narrowed to the point where the district can no longer absorb certain costs without making operational or programmatic changes or increasing revenue.”

Liggins has launched an internal investigation into the district budget problems. The school board will vote Tuesday on whether to launch an independent investigation.

After receiving Liggins’ letter about the contingency fund on Aug. 10, board member Amanda Ferguson wrote back, “Your description of the budget situation is very unsettling, though not altogether surprising. I must say, however, that it is even worse than I ever thought or expected.”

In an Aug. 28 message to staff and families, Liggins said, “We now have more complete calculations from the 2024-25 fiscal year, and although the numbers are not yet audited, we feel confident that we will end the year with a carry-forward balance of $26.3 million.” Community advocate Matt Vied and Ferguson raised the possibility at a Sept. 8 school board meeting that the amount was even lower than $26. 3 million. District leaders were adamant that it was $26. 3 million.

This story was originally published September 15, 2025 at 7:48 AM.