You will see that in item #2 in the picture below, the letter says, "Not meeting AYP could result in reallocation of Title I funding, and this would have a significant detrimental impact on our district." This is completely untrue. Reallocation of Title I funding, with regard to the 95% participation rate and AYP, could only take place for a Focus District under the ESEA Flexibility Waiver rules. As you can see on the NYS Education Department website under the link "District and School Status", Orchard Park is NOT a Focus district. Therefore, there is absolutely no reallocation of Title I funding for failing to meet AYP due to students opting-out of state tests.
In the recent past, Orchard Park School officials have made other false and misleading public statements about opting-out of state tests and its impact on Local Assistance Plan designation that is again referred to in the January 2015 letter above. This Buffalo News piece addresses their false and misleading claims, and this article explains the exact technical details of why they were wrong.
I hope this helps parents to understand the real truth about opting-out. It is probably the best tool we have available to us to protect our children and their education.