Laura, your daughter's school is required by federal law to provide her with a Free Appropriate Education (FAPE) if she has a recognized disability. ADD is recognized as a disability through 2 laws, IDEA and ADA. Both have different requirements, but the end result is the same, the school has to stop treating her as a discipline problem and change how they treat her.
Disabled students many times are gifted, and many times parents and even trained educators equate disability with stupidity. It is not the case, and your daughter definitely is entitled as a RIGHT to an IEP. That school sounds like it doesn't care about educating all the students, only about educating those that fit into their pre-conceived ideas about what students ought to be. Me, I like the "fancy" ones too, they are sometimes the people who do great things in their lives because they are not stuck in the rut that we are, they can bring a new fresh outlook to the world. But, many teachers want the cookie cutter kids, so they actually think up tasks to separate the ones they like from those that they don't, and either get them out of their classes, or fail them out of school once they get into high school.
There is an outstanding web site devoted to special education advocacy, http://www.wrightslaw.com. They have a long list of articles on their site just about ADD, in this area http://www.wrightslaw.com/info/add.index.htm . Pete Wright, who is dyslexic and very ADHD, is the attorney who started this site, and his law practice is devoted to special education issues. He has argued a landmark case before the US Supreme Court on special education rights, and won. But because he grew up with teachers who told his parents that he was a bad student, he knows the problem from personal experience. His wife, who runs the site, is a social worker. Together, they have this mission that all children will be educated as the law requires. They also have great tips on how to work WITH the school to achieve your goals. Please visit that site, and learn about your daughter's rights and how to advocate for her. You only have one shot at her education. I can't say that enough, once she is out of school, it is too late to help her.
Don't worry about the school's budget, that's their worries. Your focus needs to be on your daughter getting what she needs to succeed in school. Let the Board of Education worry about funds, that's what they get the big bucks for.
I know about this because my grown son has several learning disabilities, yet he is successful in life. I spent many years advocating for him, but in the end it was well worth it.
If you have any questions or want more information from me, please feel free to contact me at any time at ____@____.com .