Emails indicate why FCPS budget director was suspended

Days before Fayette County Public Schools’ budget director was suspended in August, her supervisor expressed concern that she had not told district leaders about a major part of the district’s looming financial problems, according to emails obtained by the Herald-Leader under the Kentucky Open Records Act.

In an Aug. 11 email, FCPS budget specialist Jessica Williams told finance director Rodney Jackson that budget director Ann Sampson-Grimes had not responded after she told Sampson-Grimes the district’s contingency or fund balance, also known as a rainy day fund, was dwindling.

“Why did she not communicate this to (district leaders)?” Jackson responded.

Four days later, Sampson-Grimes was placed on leave.

The emails were first reported on by TV station WKYT.

Sampson-Grimes’ lawyer, Brandon Voelker, maintains his client repeatedly told district officials about financial problems in the district, including the dwindling contingency fund. He has claimed his client is being used as a “scapegoat” for the district’s woes.

“We look forward to presenting the extensive amount of warnings that were told to (Deputy Superintendent Houston) Barber, Jackson, (Superintendent Demetrus) Liggins and, in some cases, certain (school) board members,” Voelker said.

The Herald-Leader also obtained emails last month showing Sampson-Grimes warned her bosses of at least some budget problems in the district.

The emails first reported on by WKYT and obtained Oct. 10 by the Herald-Leader, are the first indication why Sampson-Grimes was on administrative leave from Aug. 15 to Sept. 25, and they stand in contrast to several claims made in Sampson-Grimes’ Sept. 10 lawsuit against Liggins and the district.

They also mark the latest chapter in a monthslong saga of severe budget problems in the district. The district revealed in May it had a projected $16 million budget shortfall — the budget has since been balanced — and in August, Liggins warned the district’s contingency fund was much smaller than expected.

According to the emails, in August Williams forwarded Jackson an email she had sent to Sampson-Grimes in January that said, “without significant reductions, the available funds for contingency will be less than both the state requirement and FCPS’ internal policy.”

Williams said she thought the amount would be $2 million.

Williams told Jackson that Sampson-Grimes did not respond to the email and had cut Williams out of information about daily operations.

On Aug. 14, Jackson wrote to Barber, the deputy superintendent, that the information from Williams was “disturbing to say the least.”

The following day, Barber told human resources officials in the district to place Sampson-Grimes on leave “effectively immediately pending an investigation based on new information received yesterday.”

The district’s official reason for placing Sampson-Grimes on administrative leave was “alleged inappropriate conduct (of a non-sexual nature),” according to a letter sent from Liggins to Sampson-Grimes and obtained by the Herald-Leader.

Sampson-Grimes’ lawyer remains steadfast that his client did not fail to alert district officials of budget problems.

“That is the story they are seeking to create. Yet there are emails and countless meetings advising of the contingency issue,” Voelker said.

Sampson-Grimes was prevented from telling board members about her concerns, Voelker said.

“That all fell on Liggins, Barber and Jackson to present to the board,” he said.

Warnings from Sampson-Grimes

On Sept. 29, Voelker wrote a letter to an investigator hired by the school board to investigate Sampson-Grimes’ claims Liggins retaliated against her.

Voelker provided several examples of Sampson-Grimes trying to warn district officials the contingency fund was dwindling and cuts needed to be made. He also said Liggins revised the script she used to present the budget to the school board to remove the word “deficit.”

The emails obtained by the Herald-Leader confirm Sampson-Grimes tried to warn of at least some problems in the district.

“Additional reductions need to be made,” Sampson-Grimes wrote in one email.

“Expenditures for the current fiscal year will require significant reductions,” she wrote in another.

In a May 9 email, Sampson-Grimes wrote to Barber, Liggins and Jackson: “I think we should add back on slide No. 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 was referenced in Sampson-Grimes’ lawsuit claiming she was placed on leave in retaliation for warning of budget problems in the district.

A budget solutions work group, formed to address the district’s projected $16 million budget shortfall, made several recommendations July 29, including reducing the district contingency fund from 6% to 4% of the total general fund budget, or taking the full $16 million projected shortfall 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. “

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

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

Days later, 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. District officials later said it was $26.3 million.

FCPS contingency fund

At a Sept. 8 school board meeting, community advocate Matt Vied and board member Amanda Ferguson questioned whether the amount was even lower than $26.3 million.

District leaders were adamant that was not the case.

The Herald-Leader obtained emails under the Kentucky Open Records Act showed Williams, the budget specialist, told Kentucky Department of Education Division Director Chay Ritter Sept. 19 that she submitted a test submission of the budget, and it came back with no errors.

“From that, can I assume that the contingency threshold of a minimum 2% was met?” she asked.

“Sit tight, will take a look,” Ritter responded.

After that, there were no other emails in the thread, and the two spoke by telephone, a KDE official told the Herald-Leader. KDE has not told the Herald-Leader how Ritter ultimately responded.

But district officials have said the fund balance is above the state-required 2% of the general fund budget.

The school board Sept. 22 approved a $827.2 million budget for the fiscal year that began July 1. Liggins said it was balanced.

This story was originally published October 6, 2025 at 9:59 AM.