carolanne - if it was me, I'd take my name off of your daughter's school records as the "contact" and put her case worker, or someone at the home on there instead. I don't know if you can legally do that, but I would sure try and find out if you can.
Let them deal with it. Or your daughter. Both have decided you can't, so let them take the brunt of it.
Now, go relax and take care of yourself (and make sure you have that teacher's phone number on "ignore").