To amend part B of the Individuals with Disabilities Education Act to provide full Federal funding of such part, to provide an exception to the local maintenance of effort requirements, and for other purposes.

Summary: Mandatory IDEA Full-Funding Act - Amends the Individuals with Disabilities Education Act (IDEA) to revise and reauthorize part B programs of education of all children with disabilities. Authorizes appropriations in specified amounts for part B for FY 2005 through 2011 and thereafter. (Provides phased-in increases of funding designed to reach a promised 40 percent Federal share of funding by FY 2011.) Makes appropriations in specified amounts for part B for FY 2005 through 2011 and thereafter. Provides an exception to local educational agency (LEA) maintenance of effort requirements under part B.Repeals certain provisions relating to LEA treatment of Federal funds as local funds under part B.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mandatory IDEA Full Funding 
Compromise Act''.

SEC. 2. AMENDMENTS TO IDEA.

    (a) Funding.--Section 611(j) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411(j)) is amended to read as follows:
    ``(j) Funding.--
            ``(1) In general.--For the purpose of carrying out this 
        part, other than section 619, there are authorized to be 
        appropriated--
                    ``(A) $13,574,398,000, or 25.2 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2005, and, there are hereby 
                appropriated $4,700,000,000, or 7.6 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2005, which shall become 
                available for obligation on July 1, 2005, and shall 
                remain available through September 30, 2006;
                    ``(B) $15,746,302,000, or 28.3 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2006, and, there are hereby 
                appropriated $6,871,904,000, or 10.7 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2006, which shall become 
                available for obligation on July 1, 2006, and shall 
                remain available through September 30, 2007;
                    ``(C) $17,918,205,000, or 31.2 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2007, and, there are hereby 
                appropriated $9,043,807,000, or 13.6 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2007, which shall become 
                available for obligation on July 1, 2007, and shall 
                remain available through September 30, 2008;
                    ``(D) $20,090,109,000, or 28.3 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2008, and, there are hereby 
                appropriated $11,215,711,000, or 16.3 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2008, which shall become 
                available for obligation on July 1, 2008, and shall 
                remain available through September 30, 2009;
                    ``(E) $22,262,307,000, or 36.4 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2009, and, there are hereby 
                appropriated $13,387,909,000, or 18.8 percent of the 
                amount determined under paragraph (2), whichever is 
                less, for fiscal year 2009, which shall become 
                available for obligation on July 1, 2009, and shall 
                remain available through September 30, 2010;
                    ``(F) $25,198,603,000, or 40 percent of the amount 
                determined under paragraph (2), whichever is less, for 
                fiscal year 2010, and, there are hereby appropriated 
                $16,324,205,000, or 22.4 percent of the amount 
                determined under paragraph (2), whichever is less, for 
                fiscal year 2010, which shall become available for 
                obligation on July 1, 2010, and shall remain available 
                through September 30, 2011; and
                    ``(G) 40 percent of the amount determined under 
                paragraph (2) for fiscal year 2011 and each subsequent 
                fiscal year, and, there are hereby appropriated 22.4 
                percent of the amount determined under paragraph (2) 
                for fiscal year 2011 and each subsequent fiscal year, 
                which shall become available for obligation (A) with 
                respect to fiscal year 2011, on July 1, 2011, and shall 
                remain available through September 30, 2012, and (B) 
                with respect to each subsequent fiscal year, on July 1 
                of that fiscal year and shall remain available through 
                September 30 of the succeeding fiscal year.
            ``(2) Amount.--The amount referred to in each of 
        subparagraphs (A) through (G) of paragraph (1) is the product 
        of--
                    ``(A) the number of children with disabilities in 
                all States who are receiving special education and 
                related services--
                            ``(i) aged 3 through 5 if the State is 
                        eligible for a grant under section 619; and
                            ``(ii) aged 6 through 21; and
                    ``(B) the average per-pupil expenditure in public 
                elementary and secondary schools in the United 
                States.''.
    (b) Exception to the Local Maintenance of Effort Requirements.--
Section 613(a)(2)(B) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1413(a)(2)(B)) is amended to read as follows:
                    ``(B) Exception.--Notwithstanding the restriction 
                in subparagraph (A)(iii), a local educational agency 
                may reduce the level of expenditures, for 1 fiscal year 
                at a time, if--
                            ``(i) the State educational agency 
                        determines, and the Secretary agrees, that the 
                        local educational agency is in compliance with 
                        the requirements of this part during that 
                        fiscal year (or, if appropriate, the preceding 
                        fiscal year); and
                            ``(ii) such reduction is--
                                    ``(I) attributable to the voluntary 
                                departure, by retirement or otherwise, 
                                or departure for just cause, of special 
                                education personnel;
                                    ``(II) attributable to a decrease 
                                in the enrollment of children with 
                                disabilities;
                                    ``(III) attributable to the 
                                termination of the obligation of the 
                                agency, consistent with this part, to 
                                provide a program of special education 
                                to a particular child with a disability 
                                that is an exceptionally costly 
                                program, as determined by the State 
                                educational agency, because the child--
                                            ``(aa) has left the 
                                        jurisdiction of the agency;
                                            ``(bb) has reached the age 
                                        at which the obligation of the 
                                        agency to provide a free 
                                        appropriate public education to 
                                        the child has terminated; or
                                            ``(cc) no longer needs such 
                                        program of special education;
                                    ``(IV) attributable to the 
                                termination of costly expenditures for 
                                long-term purchases, such as the 
                                acquisition of equipment or the 
                                construction of school facilities; or
                                    ``(V) equivalent to the amount of 
                                Federal funding the local educational 
                                agency receives under this part for a 
                                fiscal year that exceeds the amount the 
                                agency received under this part for the 
                                preceding fiscal year, but only if 
                                these reduced funds are used for any 
                                activity that may be funded under the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6301 et seq.).''.
    (c) Repeal.--Section 613(a)(2) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1413(a)(2)) is further amended--
            (1) by striking subparagraph (C);
            (2) by redesignating subparagraph (D) as subparagraph (C); 
        and
            (3) in subparagraph (A)(iii), by striking ``paragraphs (B) 
        and (C)'' and inserting ``paragraph (B)''.