My child is 5years old in the first grade this year. He will be 6 years old December 10, 2011. He took reading/language test and failed.
The teacher stated he "looked" lost. So they decided to test him and stated that they had concerns about keeping him in the first grade. He does average in math. At his previous school his teacher had no problems with promoting him to the first grade. My child stated he does not want to be in kindergarden again and he gets along well with the older children. I don't know if I should put him in kindergarden again or work with him really hard this year?
It sounds like you are having some serious conversations with the school, which is probably one of the best things you can be doing. Without knowing a lot of specific information about your child, it's hard to give general advice about whether retention is a good strategy. In general, and when in doubt, don't retain - there isn't a lot of research to suggest that it's effective, and can have some "side effects" that aren't desirable. That being said, there are cases when it can make sense. If there's any way to get in touch with your child's teacher from last year, it may be helpful to get his/her sense of your child's skill level and thoughts on retention. If multiple people from different schools think retention is a good idea, it may be more worth considering than if it's just one teacher at one school.
If the only data that the school is using to suggest retention is one test that your child took, I'd be less inclined to retain also. A single test can be much less helpful than data collected over time. If your child was successful last year, it's very possible that this one test your child took is not accurate. For example, sometimes kids get sick or get nervous and perform more poorly. Because the school is new to your child, they also don't necessarily have the experience with him to know how that one test compares to other data.
In short, I'd ask for more information and stay involved. If the school seems really caring, has collected more data than just this one test, and presents a case that makes sense to you, it may be worth considering. If they seem disengaged in the process, and just quickly making a decision based off of one score, that might be a different story.
Stay involved, trust your instinct, listen, and advocate for your child!