Thank you so much everyone for your advice. I was able to talk to the state's point of contact for the compact. I was told that my daughter is eligible under it, and will be allowed to move to second grade regardless of a formal plan or testing. I wasn't positive previously due to the wording of the compact.

She is going to call the superintendent of the district and let them know. She told me that she understood why they told me what they did. It would be a funding issue if one of those two items is not in place, and my daughter didn't fall under the compact.

I think I will still see if my DD's current school will write up a plan just so I have that in my back pocket.

Thank you again everyone!!