Public School Redefinition Act of 1992

Public School Redefinition Act of 1992 - Establishes a demonstration program to provide Federal assistance to encourage States to assist teachers, parents, and local communities to establish and develop outcome-based public schools.

Authorizes the Secretary of Education (the Secretary) to award grants to State educational agencies (SEAs) to conduct such outcome-based public school programs (or, if a State elects not to participate, to award such a grant directly to an outcome-based public school).

Limits such grants to three years and requires the school to provide matching funds (ten percent in the first year and 25 percent in the second and third years). Prohibits grant funds from being used for construction or major renovation or repair of facilities, but allows their use for planning, equipment purchases and other start-up costs, including minor renovation of facilities to meet applicable health and safety requirements.

Sets forth application requirements for SEAs and eligible partnerships and for outcomes agreements between the school and the sponsor participating in the eligible partnership.

Provides that each outcome-based public school receiving a grant under this Act shall be eligible to receive Federal, State, and local education revenue, grants, and other aid as though such school were a local educational agency.

Directs the Secretary or the SEA receiving such a grant to terminate grant payments to an outcome-based public school upon determination that it is not making acceptable progress toward meeting outcomes described in its agreement.

Sets forth reporting requirements.

Authorizes appropriations.