The merchants of St. George want to know only one thing:Why can't those drivers blessed with city-issued parking permits walk a little farther to work, just like everyone else?The constant weekday infestation of official vehicles from myriad city agencies that hog expired parking meters all day is choking local businesses, because customers can't park anywhere near stores. Those who try to double-park while they run quick errands risk getting slapped with a ticket.Neighbors say city employees who abuse their parking privileges are above the law or lazy.That's the only way to explain why cars with those glossy IDs constantly occupy nearly every parking meter when an underused municipal parking lot is a short walk away.A citywide study released yesterday by Transportation Alternatives, a non-profit citizens' group that advocates bicycling, walking and public transit, found that 77 percent of permit holders throughout the five boroughs use their permits illegally.The study focused on nine trouble spots, including St. George, where it was found that of 187 total permits used, 100 were used illegally, and 114 were used at meters. The two biggest offenders, according to the study, were the Police Department and court officers.A check of the parking situation in Staten Island's downtown commercial hub yesterday revealed widespread frustration on the part of merchants about the parking crunch, and a deep resentment of those who take the prime spots in the morning and sit there for the rest of the day.MADDENING EXAMPLEOne particularly maddening example was a truck parked outside a store. Not only did it display a Sanitation Department permit that expired three months ago, the permit restricted parking to a particular Manhattan garage. Next to the placard on the dash was a New York State Supreme Court Officers Association insignia. A vehicle with a law enforcement placard was even found in a spot reserved for the press, two feet from an empty space in the municipal lot.Law enforcement officers in the area freely admitted to the decades-old culture of offering "courtesy" to fellow city employees, and turning a blind eye to improper parking. Chief Assistant District Attorney Daniel Master said his agency has a longstanding policy allowing employees to use their permits to park at meters while conducting official business, but they are expected to obey all parking regulations at all other times. Representatives for the court officers could not be reached for comment last night.THE NYPD RESPONDSIn response to the study, Deputy Police Commissioner Paul Browne said, "The Police Department does not condone illegal parking. An official placard holder must adhere to its restrictions and is not exempted from parking tickets and other sanctions when he or she fails to do so."Neighbors have said they noticed increased enforcement this week, possibly in anticipation of the study's release.Store owners and employees interviewed yesterday were promised anonymity to prevent a repeat of the backlash experienced the last time the neighborhood attempted to reclaim its rightful parking spots.Employees throughout the neighborhood complained that the parking situation is hurting business, since any space directly outside shops is almost always occupied by vehicles with placards on the dash."They're not any more important than anyone else that they can't walk a few blocks," one person said.Delivery vans were forced to double-park next to agency vehicles outside stores yesterday, to load and unload supplies. They get ticketed all the time, an employee said. Another person said that at least two of her customers have been slapped with tickets for double-parking while running into her store."I pay $4 a day to park in the municipal lot," one person said. "These people over here, they should be there too," he said, gesturing to a row of official vehicles parked along Hyatt Street. "They're above it."Maura Yates covers transportation news for the Advance. She may be reached at myates@siadvance.com.