Unless you have a good reason to believe that an out of district transfer would be approved, I would throw in the towel and get out now. Is he starting kindergarten in the fall? I would start fresh in a good district. That place sounds like a nightmare. You need to really do your research though, and make sure the new school would be a good fit, because it would be horrible to move and it's just as bad or worse. Maybe rent for a while?

We have open enrollment here, which means we can transfer into a different school or a different district if there is space. Thank god, because our district is horrible in terms of dealing with 2e kids, as well as our neighborhood school. If we get to the point where we have to move, I would rather move than deal with a district that is a nightmare and gives us continual stress. It's not worth it. Think of it this way--if you get in a good school and can trust them to teach your child and listen to your concerns, then you will have more time to work or do whatever you want to do, rather than constantly needing to advocate or teaching him yourself. Then the added cost of living there would be more affordable. Just my 2 cents based on the info provided--obviously there a lot of factors and pros and cons that only you can weigh.