To reduce the amounts appropriated to the Department of Education to increase grants to State and local educational agencies and to reduce the Federal budget deficit.

Directs the Secretary of Education to decrease Department of Education personnel costs by ten percent from amounts appropriated for FY 1993 and 1994.

Requires that: (1) 90 percent of the savings from such reduction be transferred to local education agencies in accordance with State aid distribution formulas; and (2) the remaining ten percent be used to reduce the Federal budget deficit.

Provides that nothing in this Act shall be construed to replace or reduce State and local government funding for education programs.