Wow...retention. I was not aware that there were Ks now threatening this over not being able to read. When you sat level D, do you mean level D Fountas and Pinnell, like here? http://www.readinga-z.com/readinga-z-levels/level-correlation-chart/ I'm not intimately familiar with levels (my kids' schools have not concentrated on this, at least for them) but that seems like a high bar to pass K!!

My DS (K) is expected to count to 100, IIRC, and to skip count, and facts to 10, but I don't believe they would retain unless he could not count to 10 or recognize letters or behavior was very immature indeed. I don't KNOW this. Just a feeling. As for writing, they do indeed work on it but there are a lot of kids who can't.