Business owners in this state have been saying it for years - New York is a ridiculously expensive place to operate.

Now a new report does an excellent job of verifying that observation, and we hope state legislators and Governor-elect Eliot Spitzer take notice.

The Public Policy Institute of New York released a study Tuesday that found government-related costs of living and doing business in the state are roughly $35 billion higher than the national average.

That's an astoundingly high number. Consider what it means when you break it down.

The extra costs amount to an average of $1,830 per resident or $5,015 for every private-sector job.

How many businesses can New York leaders expect to attract with those numbers?

The study, titled “Benchmark New York,” should serve as a foundation for a movement in Albany toward creating better business conditions. Much like the Brennan Center report did for government dysfunction in Albany a couple of years ago, this report can be a catalyst for change.

The higher costs are across the board. There are state income taxes, local property taxes, large energy bills, expensive health care costs, out-of-control workers' compensation charges and a host of other government fees.

The problem in New York is that none of these problems alone create the disadvantageous economic conditions.

To turn things around and make this state truly attractive, everything needs to be addressed.

The urgency is especially prominent in places like Auburn and Cayuga County, where small businesses are really the engine that drives the economy. Small businesses, with narrow profit margins and often minimal outside investment, typically struggle most to deal with this mix of government-driven costs.

We hope the typical lull that comes with the week between Christmas and New Year's Day does not allow this study to be overlooked. Instead, it should be at the top of the reading pile for every lawmaker when they return to Albany next week.