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she is convinced that he needs to "prove he can do first grade."

This comment sets my teeth on edge, but maybe you can use it to your advantage. Ask if your son can take the end of year assessments in order to make "student-focused, data-driven decisions."

Your plan sounds good and I second Grinity's modification. As far as workbooks, I found DD does not like the kind that are just pages of calculations. We've had good luck with Addison-Wesley Mathematics Building Thinking Skills Workbook. It includes critical thinking, reasoning, and data analysis. Another one she likes is the Dorling Kindersley Math Made Easy.

I've explained to DD that it's important that she works at the appropriate level and why. I also think children need to have down time, so she understands why it's important to do this at school instead of relying on afterschooling.

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LOL...I am so angry that it seems everything I write is a vent

Sounds like you have good reasons to vent and I share your anger about this situation. The silver lining may be that the principal will know you aren't a good match for a lackluster teacher next year!