You are absolutely correct that any areas in which the child was found eligible and has an IEP for has a right to have a re-evaluation in those areas every three years. I would suggest referring the school psychologist to the IDEA and any state guidelines you can find regarding special education processes that address this specific issue. l would even call your state department of education and speak with someone and add THAT to you email. I would also copy your director of special education. The only allowed reason for not conducting a three year re-eval is if BOTH the school district and parent agree. I they still say "no," ask for a PWN and file a state complaint.
As far as the math goals, again, you are absolutely correct that she should be switched to life skills math. At a minimum, she should not be attending any gen ed math classes at all, but instead should be spending that time in special education math. Schools try to argue that students need to stay at least part of the time in the gen ed math class so they are exposed to the skills their peers are learning. But your daughter is way too far behind to get anything our of a gen ed math class and it would be very frustrating and a complete waste of time. Other than pointing to her significantly low math level, I'm not sure how else to convince the team.