Lisa has an article outlining how the sped system is stacked against parents. It stinks. Is there any way in your area to get your child help outside of school? Perhaps a nonprofit would have a reading program? Would hiring private tutors be a possibility? Keep advocating, attending meetings, requesting PWNs & such, but, it seems your district is unwilling to help your child. If there's any way to get help outside of school, I'd explore those options.