Their take on it is that our district is teaching up a grade level already, to meet the needs of the many bright kids in the district. So, if they let in all the kids at 120 or 125 and above they'd end up with about 20% of the kids in the district. So, they've raised it to 140 and say that the kids under that are served in the regular classroom (with differentiation if necessary).
Do you really think that 20% of your neighborhood kids are in the tope 5% of the nation in terms of intelligence? If so, I do imagine that they have some experience with providing for the needs of these kids in the classrooms and, if your dd isn't fitting there, she is probably higher than this by a reasonable amount. That's where I take exception with our schools' id processes b/c I really don't believe that 20% of our kids are that high or that my oldest is more than slightly into the HG category yet she is so totally different than the majority of the kids in the GT programming that it was not even close to a fit without the grade skip.