Overcrowded means that the school is over capacity.
For example, look at Little Bennett ES in Clarksburg:
http://www.montgomeryschoolsmd.org/departments/regulatoryaccountability/glance/currentyear/schools/02336.pdf
On the first page, you see that enrollment in 2012-2013 was 957. On the second page, you see that the capacity of the school is 673.
"Overcrowded" has nothing to do with class size.