If I were you, I would ask them how they assess reading and what skills they are looking for when they place a kid instructionally.

What we found with reading at our school is that the initial placement decision is made based on a QRI (qualitative reading inventory) and the reading specialist requires that the kid read the passage out loud to check for decoding errors. I used to administer the QRI and you are supposed to stop read aloud at (I think) a third grade level.

Our kid never went through a stage of reading out loud, and is really uncomfortable doing so, and won't read anything out loud if he thinks it is a test.

so, he made a ton of miscues, but answered all the comprehension questions correctly at a third grade level, and they decided that meant he was instructional at a second grade level for decoding. Except that he reads and comprehends 6-8th grade level texts at home when he reads silently.

thankfully, the gifted specialist believed us and they administered additional tests that backed up our assertion and he is more appropriately placed now.