The signs you describe are consistent with dyslexia. Most people with reading problems have auditory short-term memory deficits and reduced phonological awareness (i.e., the awareness that spoken language can be broken down into smaller chunks) which also affects their ability to spell, write to dictation, and copy from the board. Research has shown that these phonological awareness deficits persist throughout life and that intense and systematic treatment is necessary in order to improve their reading skills. I really hope that the school has been doing some kind of remediation and providing him with some classroom accommodations (e.g, relaxing time limits on tests, helping him read questions, etc.) and not just holding this boy back, as retention has not been found to be effective.
I know that this is beyond your control, but I really think that this child needs an assessment. I’m not familiar with the American school system, but I can’t imagine that it would be legal for the school to withhold information from the parents regarding a suspected learning disability. (It certainly isn’t ethical.) I’m also puzzled by the school’s stance that it cannot afford to assess this student as most school boards have speech-language pathologists / psychologists already on the payroll. The school could also just suggest that the parents consult with their GP who could then refer them to a paediatrician for an evaluation (this is a good idea anyway if there are concerns regarding his attention).
The cost of treatment shouldn’t be any more than what they’re already spending either, as I imagine a special education teacher is already working with him quite a bit. In fact, having an assessment done would likely be more cost-effective as it would allow the teacher to pinpoint the specific areas in which this student needs remediation.
It’s also just sad that the school is just going to wait until this child has failed abysmally before stepping in. By that time, it’s almost a certainty that this student will hate school and will not be willing to do all the work that will be needed in order to catch him up. It’ll be especially hard for him to catch up anyway as he only has one more year left in the primary division. Once he’s in grade four, the curriculum will shift from “learning to read” to “reading to learn” and he simply won’t be able to cope.
With regard to remediation, it’s hard to suggest where you should begin without knowing the specific needs this child has. If he does have a phonological awareness weakness, then that’s where treatment would need to start as it’s the foundation for reading. I’d ask the teacher to see if she knows what his sound awareness skills are like (e.g., Can he rhyme? Can he break words down into syllables? Can he isolate the individual sounds – not the letters, but the sounds – in a word?). If he needs help with these skills, then the school should have some resources that you can use. Two very popular activity books are Sounds Abound and Take Home Phonological Awareness. Some schools also use a computer program called Earobics. Once his phonological awareness skills are well developed, he can then move onto phonics (i.e., learning what letters go with what sounds).
The teacher should also get the student’s parents involved as it’s critical that they help him practice his reading at home (he should be reading 20 minutes every day with someone who can provide him with feedback). Two popular reading programs that the teacher may wish to share with the parents are the Paired Reading and the Repeated Reading programs.
Some attention should also be given to this student’s knowledge of sight words as learning these will improve his reading fluency. The teacher should have a list of sight words already, but you can also find a list of them at this site.
Finally, if the teacher is interested in learning more about dyslexia and its treatment, I’d recommend she read Overcoming Dyslexia by Sally Shaywitz.
I wish you and this student the best of luck. He’s lucky to have a peer-tutor who’s as dedicated as you. I just hope that the school staff will give him the support he needs too because it really is their responsibility to ensure that this student can access the curriculum. The school and the parents need to sit down and formulate a game plan asap.