Lexington, KY, September 16, 2025
News Summary
Ann Sampson-Grimes, the budget director for Fayette County Public Schools, has filed a lawsuit against Superintendent Demetrus Liggins and the school board. She claims retaliation for her warnings about significant financial mismanagement and a $16 million deficit. Sampson-Grimes seeks damages, reinstatement, and protection against further harassment after being placed on administrative leave under questionable circumstances. The lawsuit highlights urgent calls for a forensic audit and raises concerns over compliance with financial policies in the struggling school district.
Lexington, KY – Ann Sampson-Grimes, the budget director for Fayette County Public Schools (FCPS), has filed a lawsuit against Superintendent Demetrus Liggins and the school board, claiming retaliation due to her warnings about potential financial mismanagement within the district. The lawsuit was filed in Fayette Circuit Court and outlines several serious allegations including the prevention of her reporting wasteful spending and being placed on administrative leave under dubious circumstances.
The school district is currently grappling with a significant $16 million deficit, which has intensified calls from the community for a forensic audit to investigate its financial operations. Sampson-Grimes alleges that she was placed on administrative leave for an “issue of leadership,” as described in a letter she sent to Liggins, connecting her leave to her warning about the district’s financial struggles.
In her lawsuit, Sampson-Grimes seeks compensatory and punitive damages, along with reinstatement to her former position and protection against further harassment or discrimination. Her attorney has claimed that Liggins ignored the financial warnings she issued and instead favored continued spending without necessary budget cuts. Throughout her five-year tenure in the district, she has served as the executive director of Budget and Financial Planning for the upcoming 2025-2026 school year.
FCPS has not publicly commented on the legal actions, as spokesperson Miranda Scully stated no remarks would be made regarding the lawsuit. However, the lawsuit brings forth accusations that Liggins intentionally acted to suppress Sampson-Grimes’s concerns about the budget. Despite advising reductions to comply with a 6% contingency required by the Fayette County Public School Board, her recommendations went unheeded.
Deputy Superintendent Houston Barber had reportedly acknowledged the necessity of budget reductions but then blocked Sampson-Grimes from implementing these cuts. Her repeated warnings regarding declining budgets and cash flow issues were consistently overlooked or dismissed by district leadership. Furthermore, she claims that her role and responsibilities were undermined as her team was restructured to inhibit her effectiveness, despite previously receiving positive performance reviews.
Sampson-Grimes also noted that the rationale for her administrative leave was vaguely based on accusations of inappropriate conduct of a non-sexual nature. Upon being placed on leave, she asserted that she faced harassment from Barber. Although the district’s legal department made attempts to reach out, she hesitated to discuss the matter without legal representation.
The ongoing budget crisis has raised public questions about compliance with board policies and increased scrutiny over the district’s financial management practices. With a state-mandated deadline to finalize its budget by September 30, 2025, urgency surrounding the situation is mounting. The lawsuit emphasizes a troubling culture of retaliation against staff members who voice concerns regarding fiscal oversight within the district.
Key Issues Raised in the Lawsuit
- Sampson-Grimes claims retaliation for her warnings about financial mismanagement
- The lawsuit highlights a key budget deficit of $16 million
- Calls are being made for a forensic audit of district finances
- Allegations include diminished job responsibilities and deliberate obstruction of budget planning efforts
- The legal action raises concerns over compliance with district financial policies and procedures
Summary of Key Features
| Key Feature | Details |
|---|---|
| Defendant | Superintendent Demetrus Liggins and school board |
| Plaintiff | Ann Sampson-Grimes, Budget Director |
| Claim | Retaliation for reporting financial issues |
| Current Budget Deficit | $16 million |
| Department Under Scrutiny | Budget and Financial Planning |
| Legal Actions Sought | Compensation, reinstatement, protection from harassment |
| Deadline for Budget | September 30, 2025 |
Deeper Dive: News & Info About This Topic
HERE Resources
Fayette County Public Schools Cancel Interview Amid Budget Crisis
Fayette County Schools to Conduct External Audit Amid Budget Shortfall
Fayette County Schools Faces $16 Million Budget Shortfall
Severe Roof Leaks Disrupt Classes at Paul Laurence Dunbar High School
Leadership Changes and Community Initiatives in Kentucky
FCPS Grapples with $16 Million Budget Deficit
Fayette County Schools Budget Director Claims Retaliation Over Financial Warnings
Budget Crisis Escalates in Fayette County Public Schools
Fayette County School Board Pulls Back on Tax Proposal Amid Budget Woes
Fayette County Schools Face $16 Million Budget Shortfall
Additional Resources
- LEX18: FCPS Executive Director of Budgeting Files Lawsuit Against District
- Kentucky.com: FCPS Budget Director Files Lawsuit
- Fox 56 News: Contractor Sues Fayette County Public Schools
- Wikipedia: Fayette County Public Schools
- Encyclopedia Britannica: School Funding
Author: STAFF HERE LEXINGTON KY STAFF
The LEXINGTON STAFF WRITER represents the experienced team at HERELexingtonKY.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
