ALBANY, N.Y., October 3 – The Business Council of New York State called for reform of health insurance benefits for retired New York State public employees at its annual meeting at the Sagamore Hotel in Lake George, New York.

Failure to address the issue will harm the states ability to boost job growth by stifling the states ability to attract new business to the area, according to a spokesman for the council. New York already trails much of the nation in this area.

According to Governor George E. Patakis budget office, taxpayers will pay $47 to $54 billion over the next 30 years to provide health care benefits, such as dental, vision, and life insurance to government retirees. The Government Accounting Standards Board, a non-profit organization that establishes financial accounting and reporting standards for state and local governments, provided the estimate.

Both candidates for governor, who addressed the meeting, called for action, and indicated that they would set aside part of the states surplus to deal with the unfunded costs in future years.

John Faso, a former Assembly minority leader and Republican candidate, said that policymakers have to recognize that this is an issue. He indicated he would seek to make health savings accounts available to existing government employees, and negotiate concessions from public employee unions to curb costs for future retirees.

The Democratic candidate, Attorney General Eliot Spitzer, commended the program of New York City Mayor Michael Bloomberg and pointed out that the state will have to take a similar long-term approach to come to grips with this issue.

Local governments and the state have more flexibility to change health care benefits to curb costs without depriving people of the coverage they need, according to E.J. McMahon, of the Empire Center for New York State Policy, a group that tracks the states finances.