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I have talked to the teacher 3 times about this and feel like I need to drop it with her for now because she was getting aggravated and just kept explaining the benefits of things like having empathy for the other kids.

Hmm. Maybe I'm taking this out of context, but that kind of sounds like she's afraid it will hurt other kids' feelings if your child tests out of what they are learning. I suppose she wouldn't appreciate it if you asked if she could have some empathy for YOUR child wink

Seriously though...I second the recommendation of Susan Weinbrenner's book, but maybe for starters just photocopy the section about pre-testing and compacting to focus on your immediate concern. I'm pretty sure that's the resource that advocates offering, rather than requiring a pre-test for anyone who would like the opportunity (a basic summary of the types of skills to be covered is given to students to help them decide if it's something they want to do).