In Ontario, nearly half of the elementary schools have fewer than 300 students, and one quarter of the high schools have fewer than 600 students. However, the province's funding formula was designed for larger schools. Small schools in Ontario are operating without adequate staff and resources and are at risk of being closed. Since 1999, 192 schools have closed in Ontario, almost all of them small schools. This report examines school size across Ontario's elementary and secondary schools; the number of enrolled students required under the current funding formula to fund full-time principals, vice-principals, secretaries, teacher-librarians, and guidance counselors; the Small Schools Allocation, which provides additional support to a few qualifying schools; the funding gap, which affects half of Ontario's elementary schools; staffing trends in small versus large schools; the benefits of smaller schools; and the recent trend toward larger schools in Ontario. Provincial policies and programs to maintain small schools in Quebec, Saskatchewan, and Newfoundland and Labrador are described, and specific recommendations are offered for changing the Ontario funding formula to meet the needs of small schools. (SV)