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For the first year of the program, the concerts are organized so that only the kids who have mastered pieces play; if a student has not yet gotten that far in their ability, they sit down for that piece(s) during the concert.

I am so distressed by this. Again, I have no problem whatsoever with high-level auditioned ensembles, but there should always also be a musical ensemble available where you do not have to "pass" to perform. Practice is great and can be required of a student (DD is required to practice and keep a log), but not allowing students to perform? Wow.