Equalization in Education Act of 1992

Equalization in Education Act of 1992 - Title I: Equalization of State Spending for Public Education - Prohibits any State from receiving Federal educational assistance for distribution to its public elementary and secondary schools, after August 1, 1996, unless it: (1) employs an equitable method for financing such schools, as determined by the Secretary of Education (the Secretary); or (2) has in effect a State equalization plan approved by the Secretary. Exempts from such prohibition Federal assistance received under provisions for educationally disadvantaged children under chapter 1 of title I of the Elementary and Secondary Education Act of 1965 (ESEA chapter 1).

Requires direct distribution to the local education agencies within the State of any Federal funds denied to a State under this Act, so that funding purposes may be carried out and equalized financing standards met.

Directs the Secretary to provide requested technical assistance to any State to assist in complying with this Act.

Directs the Secretary to review annually each State's school financing methods to determine compliance with standards for equalized financing established by the Secretary under this Act. Requires such standards to: (1) incorporate a specified wealth neutrality test incuding at least 95 percent of revenues within the State; and (2) provide for consideration, with respect to each local educational agency, of specified factors relating to numbers of poor or disadvantaged children and to the local tax base for school financing.

Requires any State that is notified by the Secretary that its school financing method is inequitable to submit a State equalization plan to the Secretary within one year after such notification. Requires such a plan to provide for achieving an equitable school financing method within five years after plan approval by the Secretary.

Requires Federal funds allocated to a State prohibited from receiving them to be distributed to local education agencies within the State so that funding purposes may be carried out and equalized financing standards met.

Title II: Grants to States with Equitable Financing - Directs the Secretary to make grants to States that are in compliance with the requirement of substanial equity (by employing an equitable method or having an equalization plan in effect) in school financing. Requires such grant funds to be used to further the goal of providing equalized funding to all public elementary and secondary schools in the State. Sets forth allocation formulas for such grants. Authorizes appropriations.