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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)''.
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.