Annual elementary school surveys have tracked the effects of funding and policy changes on Ontario's publicly funded education system since the funding formula was introduced in 1997. In 2002-03, surveys were received from 886 public, Catholic, and French-language schools, representing 22 percent of Ontario's elementary schools and 71 of 72 district school boards. Results show that the provincial funding formula is no more equitable than the previous funding model based on local taxation ability. Per pupil funding has an unfair impact on the education of students in boards where most schools are small. Students in northern and rural Ontario are more likely to go without teacher-librarians and full-time principals. Students in boards where most schools are small have less access to music and physical education teachers, spend more time on school buses, and endure higher student-teacher ratios in special education. In Ontario, the funding formula is driving education policy. The government must develop education policy that guarantees students access to the staff and programs needed for educational success, and must provide adequate funding to implement the policy. This report presents data on school size, principals and administrative staff, class size, specialist teachers in music and physical education, guidance counselors, grade 7-8 specialist teachers in the arts and technology, school libraries and librarians, access to textbooks, special education, professional support services, teacher aides, English as a second language, volunteers, fund raising, condition of school buildings, custodians, community use of schools, and busing of students. Specific recommendations are offered in many of these areas. (SV)