Montgomery County schools Superintendent Thomas Taylor wants to reduce class sizes and raise staff salaries in a budget that reflects the stark financial reality staring down the district.

Taylor is proposing a nearly $3.8 billion operating budget for next year — a 5% increase that he said reflects tough economic circumstances. The school system faces steep inflationary pressures, tenuous federal support and declining enrollment.

“We are certainly not in the most stable position for success,” Taylor said. “But what I can promise you is that every storm comes to an end.”

The superintendent’s Wednesday night budget presentation kicked off months of consideration and feedback. The district’s proposal must go before the County Council, with final adoption not expected until June.

Taylor said his budget focuses on fundamentals. Here are five key takeaways from his proposal.

1. Employee salaries

Staff salaries and benefits account for most of the district’s budget, and the majority of Taylor’s requested increase would go toward these things.

His proposal includes an average of a 3.25% general wage adjustment, along with certain step increases previously negotiated with unions.

The superintendent said these bumps are necessary, especially as staff members confront the high costs of living in Montgomery County.

“It’s actually really tough to make ends meet,” Taylor said.

2. Central staff positions

District leaders plan to cut dozens of positions from the central office and eliminate redundant contracts in a move expected to save the district about $11.5 million.

“We try to deal with as much as we can with reassignments and attrition,” Taylor said.

More details on the potential cuts are expected this week.

3. Class sizes

Taylor pointed to the district’s declining enrollment as an opportunity to shrink class sizes.

He wants to reduce elementary class averages by at least one student.

“I’m not thrilled about declining enrollment,” he said. But “this is the ideal time to really attack class size aggressively.”

4. Special education

The superintendent wants to spend more than $16 million on a plan to ensure every elementary school has a resource teacher for special education.

He described this position as a campus authority on special education law who can help with the paperwork and other administrative tasks for kids with disabilities to get the support they need.

“These are critical support positions,” Taylor said.

Montgomery County schools face frequent legal challenges from parents who dispute the level of support provided to their children with special needs.

“I’m tired of going to court with our parents. I want to find great solutions with our parents and be collaborative partners with them,” Taylor said. “This is the kind of thing that, candidly, will pay for itself over time in reduced legal fees and reduced stress and teacher turnover.”

At the same time, the district is bracing to pay millions more for private school placements for students with severe disabilities.

5. Other investments

Taylor pitched spending about $2 million on expanding summer school and roughly $1.7 million for additional security staff.

The new security positions would be largely targeted toward elementary schools.