My first grader is supposedly in the highest reading group. They don't care what books he checks out of the library, at least! At the parent-teacher conference in the fall, they gave us these cards that had the 100 sight words they should know at the end of the year- of course, he already knew them, at the start of first grade.
Still, we have found things he can work on. They do a reading contest at their school, and he is working on reading 400 books or chapters in books over 4 months. He's reading 30-45 minutes a day at home. Etc. Our gifted program doesn't start until 4th grade!