SECTION 3. Chapter 70 of the General Laws, as appearing in the 2006 official edition, is hereby  amended by striking section 3 and inserting the following section:- For the school district in each municipality, for each regional school district, and for each independent vocational school in the commonwealth, there is hereby established a foundation budget.

The board of education is authorized to adopt regulations furnishing interpretive guidelines for the determination of foundation budgets. Said regulations shall be filed with the house and senate committees on ways and means not less than thirty days before said regulations become effective.

The foundation budget shall be calculated using foundation enrollments for the respective fiscal years as estimated by the department according to the procedures outlined in section 2. The monetary factors used in calculating the foundation budget for such years shall be adjusted for inflation by multiplying each such factor by the foundation inflation index. The factors to be inflated shall be the monetary values for the foundation payroll, including the cost of health insurance premiums for current and retired employees, foundation nonsalary expenses, professional development allotment, expanded program allotment, extraordinary maintenance allotment and book and equipment allotment.