I almost didn't write this, since you may snap back if you don't like what I suggest. Please remember we are all taking our time to try to help with the limited info. AND you don't have to take the advice, certainly not take it personal.
We've had many different reading issues in our familiy, and just moved here 2 years ago, so we had to find our way. It hasn't been easy - people are proprietary and competitive here...and expensive!
Cathy Cummings is an excellent reading teacher. She holds reading group sessions (enrollment open to the public)at San Antonio Academy for Boys on French Place, 78212. The kids love her and she can give brief assessments once she works with your child a bit. She's an expert that teaches reading teachers. Very pricey tough.
Academic Associates is a program my daughter is doing now. One on one tutoring at $40 hour. One on one phonics reading is better usually, but I find this systematic approach to phonics is sometimes redundant to what she already knows and I'm paying for that time. Also, they aren't personally as skilled as Cathy Cummings to give expert advice. Very pricey. Dea McCall is the contact, the program can be found online - search it.
Sylvan - my son is doing a writing program there. Very pricey. We first signed up to pay by the month and only 2 per week (even though they suggested more for success). I now feel we have gotten what we need from it and we are putting in notice to end it. So we will pay alot less then they suggested. The Sylvan rep did come to my son's school and discuss approaches with the Teacher. I insisted I be there and I found it a very good communication between the two in the best interest of my son. We are all on the same page.
My son was at the Winston School of San Antonio 2nd & 3rd. It is an LD school (for learning disabilities) He is now back in public school. He does have ADHD & Dyslexia. They taught him to read above grade level, fantastic and such a relief! They could tell you about testing that would help identify issues - whether learning disability or achievement or whatever. I don't know the test names are, but ask Julie Saboe there. I had him tested back on the East coast by a Diagnotic Psychologist, and this testing revealled more than LD, it helped us understand his learning styles and his strengths...how he compensates. Tests are pricey, that one was $1,200, including the interpretation/counseling charges.
I found there are "Education Consultants" in the phone book. I spoke to one about schools when we arrived, but not about testing. They might be helpful, however, probable pricey.
The public schools here are crazy about TAKS and preparing the kids. They are worried about the scores. The 'hold back a year' threat I think is so premature at this point in the year. You may want to ask (outside the school) about Parent Advocates to be with you at school conferences to know your child's rights. I do not know any, but again you can ask the Winston School of SA about such programs.
That's it for now. You are obviously a caring mom and you know what is best for her and your family. Use your instincts, take a breath and do some research.