An update:

We DID get the IEP finalized under a learning disability. She'll stay in first grade and continue first grade science, history, literature, music, and art but continue to work at slower kindergarten pace for phonics. I'm okay with this plan for the rest of the school year. I am very happy I now have documentation that, even though she tests low average for her age, she does display areas of severe problems with phonics, reading, writing, and math calculation. I should have test results from the school soon and hopefully actual numbers will tell me more.

She'll be getting tested at the University this summer for learning disorders and I have made them fully aware of what they are getting. They have all the testing result I have so I am hoping they can give us a hand. I'm still looking for affordable neuropsych testing. If anyone knows of anything in Denver I'd love to know.