I don't disagree that it's discriminatory, but discrimination is perfectly legal, so long as it's not based on status as member of a protected class. And the class of "advanced 4yos" is not protected.

FWIW, minimum age at entry to both K and 1st is set by law in our state (at 5yo and 6yo by 9/1, respectively). So no early entry to K, or skips to 1st, but you can skip to 2nd at any age, assuming sufficient academic ability.

Your DD is 2, or close to it, right? So she would have made the 12/2 cutoff, but won't make the 9/1 cutoff in 2012? Given that your older DD is highly accelerated, I'd suspect that K is likely to be as bad a fit for the younger at 4 as at 5. Would working with her at home for that year, and enrolling her as a 1st or 2nd grader be a possibility to consider?