Thanks for all the input. The thing with my DS is that he can be incredibly lazy and unmotivated. So the last teacher didn't push him to do anything at all and didn't expect anything from him, and he lived up to her expectations. His writing seriously deteriorated over the course of the 5 months he was in that class and at the end looked like preschool writing, when before it was reasonable for his age. I don't think he has dysgraphia, it's more DCD and hypotonia. So when he slows down and puts extra effort into it, he does produce neat handwriting and it will probably get better over time. The teacher is being strict with him and is not putting up with his nonsense, which I think is good, as long as she doesn't over-do it. That kind of method would probably be really bad for a kid who was actually motivated, but just couldn't do it. It's a balance. I don't want him to be forced to over-do it, but he needs some pushing as well because of his laziness and apathy.
The lady from the district has the math assessments. I don't think she knew he is on an IEP. She told me that "he seems slow" (as in physically slow). Duh, lady, he's on a "physically impaired" IEP and you just made him do 3 back-to-back unit tests for math. Good job. No one even told me they were going to pull him out for math tests. I asked DS if he tried his hardest on those tests and he said only on the problems where he didn't have to write much.