DESCRIPTION OF ART WORK ON REPORT COVER
Small box above the funds names showing a lions face.
DEAR SHAREHOLDER,
We are pleased to provide you with performance and portfolio information
for the Dreyfus/Laurel California, Massachusetts and New York Tax-Free
Money Funds for the semi-annual period ended December 31, 1994.
As you know from recent correspondence, The Laurel Funds are integrating
with The Dreyfus Family of Funds. As a result of this integration, the
Laurel California, Massachusetts and New York Tax-Free Money Funds are now
known, and publicly listed, as the Dreyfus/Laurel California, Massachu-
setts and New York Tax-Free Money Funds. Please be assured that the new
names do not affect the value of your account nor the investment objective
or strategy of your Fund.
In the pages that follow, we have provided detailed financial statements,
a description of the market environment over the last six months, a com-
mentary on the Funds' investment management strategy and portfolio changes
for the reporting period.
We would like to extend our appreciation for your support and hope that
you will find that your Fund, which is now part of The Dreyfus Family of
Funds, will continue to satisfy your investment needs. As always, we wel-
come your thoughts and suggestions.
Sincerely,
Marie E. Connolly
President
The Dreyfus/Laurel Tax-Free Municipal Funds --
Dreyfus/Laurel California Tax-Free Money Fund
Dreyfus/Laurel Massachusetts Tax-Free Money Fund
Dreyfus/Laurel New York Tax-Free Money Fund
February 22, 1995
TABLE OF CONTENTS
Shareholder Letter ............................. 1
Economic Review ............................... 3
Portfolio Overview ............................. 4
Portfolio of Investments ....................... 5
Statement of Assets and Liabilities ............ 16
Statement of Operations ........................ 18
Statement of Changes in Net Assets ............ 19
Financial Highlights ........................... 22
Notes to Financial Statements .................. 33
ECONOMIC REVIEW
ECONOMIC EXPANSION CONTINUES
Following several years of stop-and-start recovery, the U.S. economy fi-
nally established a steady pace of expansion early in 1994 which continued
throughout the year. Major economic indicators pointed to healthy growth,
as report after government report brought confirming evidence. Both con-
sumer and industrial sectors showed strength. Consumer spending rose, as
did homebuying and home construction, which fueled strong sales of durable
goods as recent homebuyers outfitted their new homes. Manufacturing orders
were up as well. At the same time, unemployment fell to its lowest level
in nearly four years.
THE BIG CHANGE: RISING INTEREST RATES
The robust economy triggered a dramatic shift in the interest rate envi-
ronment which began in February and continued throughout the semi-annual
period. Determined to head off inflationary pressures that might be build-
ing along with economic strength, the Federal Reserve Board raised short-
term interest rates six times between February and November, 1994. These
moves represented a definitive shift away from the Fed's previous "easy
money" policy and ended a nearly 5-year period of declining short-term
rates that had fueled a rally throughout the fixed-income market. The new
short-term interest rate policy also marked the end of extremely low or
declining yields for municipal money market investors.
Initially, the Fed acted in a preemptory fashion -- actual inflation had
not yet appeared, although the economy seemed to be growing a bit too rap-
idly for comfort. Later in the year, producer prices did begin to rise.
The Fed was concerned that these price increases would eventually flow
through to the consumer level unless it raised interest rates again. Rap-
idly expanding foreign markets pose yet another challenge for the Fed,
since their growth creates demand for U.S. goods and services which puts
inflationary pressure on our economy.
A POSITIVE FOR MUNICIPAL MONEY MARKET INVESTORS
The interest rate increases that spelled difficulty for most fixed-income
investors actually worked in favor of municipal money market investors.
Reversing the trend of the past two years, rising short-term interest
rates elevated yields on virtually all money market instruments in which
the California, New York, and Massachusetts Funds invest. In addition, mu-
nicipal money market instruments continued to maintain their relative
yield advantage over comparable taxable securities for investors in moder-
ate and higher tax brackets.
CAUTIOUSLY OPTIMISTIC FOR 1995
With economic growth seeming to show no signs of abating, we expect the
Fed to continue its anti-inflation fight by periodically raising interest
rates in the coming months. In this environment, municipal money market
investors may continue to enjoy the benefit of rising yields on their se-
curities.
PORTFOLIO OVERVIEW
Anticipating the Federal Reserve Board's ongoing interest rate increases,
portfolio managers shortened the average weighted maturity of each of the
Funds during the last six months. This move kept the Funds flexible for
further interest rate increases and the rising yields on money market in-
struments that might accompany them. The managers also continued to empha-
size high quality holdings and proper diversification among many different
issuers and instruments.
Given our expectation for a continuing rise in interest rates, the manag-
ers currently plan to maintain their focus on diversification, shortened
average maturities, and high quality holdings in the months ahead. This
strategy will seek to keep the Funds well positioned to capture the high-
est possible yields while maintaining the portfolios' emphasis on high
quality.
PORTFOLIO OF INVESTMENTS
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
(UNAUDITED) DECEMBER 31, 1994
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 90.6%
CALIFORNIA -- 90.6%
$ 190,000 Bay Area, California, Government Associa-
tion,
5.300% due 04/01/97+ $ 190,000
600,000 California Housing Finance Authority Reve-
nue,
5.300% due 07/15/13+ 600,000
California Health Facilities Authority Rev-
enue,
400,000 (Granada Medical Project),
5.950% due 01/01/15+ 400,000
(Pooled Loan Program):
100,000 5.750% due 05/01/95+ 100,000
200,000 5.750% due 10/01/10+ 200,000
California Pollution Control Financing Au-
thority, Pollution Control Revenue:
1,150,000 (Champlin Petroleum),
4.000% due 06/01/95++ 1,150,000
600,000 (Burney Forest Products), Series A,
Project A,
5.900% due 09/01/20+++ 600,000
(South Down, Inc.):
100,000 4.350% due 02/15/98++++ 100,000
300,000 4.350% due 04/15/98++++ 300,000
400,000 Series B,
4.350% due 09/15/98++++ 400,000
1,500,000 (Southern California Edison Inc.), Series
D,
3.700% due 03/01/08++ 1,500,000
300,000 California Statewide, Community Development
Revenue,
5.625% due 08/01/19+ 300,000
600,000 Fairfield, California, Industrial Develop-
ment Authority, (R. Dakin & Co. Project),
4.400% due 12/15/02++++ 600,000
500,000 Glendale, California Revenue, Reliance De-
velopment,
4.350% due 12/01/14++++ 500,000
495,000 Healdsburg, California, Community Redevel-
opment Agency,
5.600% due 01/01/98+ 495,000
450,000 Huntington Park, California, Redevelopment
Agency,
4.000% due 08/01/15++ 449,492
100,000 Kern County, California, Certificates of
Participation, Series D,
5.350% due 08/01/06+ 100,000
1,500,000 Long Beach, California, Harbor Department
Revenue, Series A-2,
4.400% due 03/01/23++ 1,500,000
625,000 Los Angeles, California, Community Develop-
ment Agency, Multifamily Housing Revenue,
5.350% due 12/01/05++ 625,000
1,000,000 Los Angeles, California, Harbor Department
City, Series B,
3.650% due 01/12/95++ 1,000,000
1,350,000 Los Angeles County, California, Local Tax
and Revenue Anticipation Notes,
4.500% due 07/06/95++ 1,354,967
500,000 Los Angeles, California, Metropolitan
Transportation Authority, Series A,
5.400% due 07/01/20+ 500,000
100,000 Los Angeles County, California, Multifamily
Housing Authority, (Poinsettia Project),
5.750% due 07/01/19+ 100,000
2,500,000 Los Angeles County, California, (Willow-
brook Project),
5.625% due 11/01/15++ 2,500,000
1,300,000 Metropolitan Water District,
4.350% due 01/23/95++ 1,300,000
400,000 Monterey Peninsula, California, Water Man-
agment District,
5.400% due 07/01/22+ 400,000
600,000 Moorpark, California, Multifamily Revenue,
5.500% due 11/01/15++ 600,000
440,000 Ontario, California, Multifamily Housing
Authority, (Vineyard Project),
5.350% due 12/01/05+ 440,000
675,000 Rincon Del Diablo, California, Water Dis-
trict,
3.600% due 02/01/15++ 675,000
800,000 Riverside County, California, Tax and Reve-
nue Anticipation Notes,
4.250% due 06/30/95++ 802,473
500,000 Sacramento County, California, Certificates
of Participation,
5.250% due 06/01/20+ 500,000
Sacramento County, California, Multifamily
Housing Revenue,
100,000 Series A,
5.600% due 04/15/07+ 100,000
200,000 Series B,
5.600% due 04/15/07+ 200,000
1,000,000 Sacramento County, California, Municipal
Utility District,
4.150% due 02/15/95 1,000,000
1,000,000 San Diego, California, Area Local Govern-
ment, Tax and Revenue Anticipation Notes,
4.500% due 06/30/95++ 1,004,187
1,035,000 San Diego, California, Multifamily Housing
Revenue, (Market Street Square Project),
6.050% due 11/01/25+ 1,035,000
500,000 San Diego County, California, Regional
Transportation, Series B,
5.750% due 04/01/08+ 500,000
500,000 San Diego County, California, (Paseo Point
Apartments), Series A,
5.500% due 08/01/15+ 500,000
1,500,000 San Francisco, California, Housing Author-
ity, (737 Post Project), Series D,
5.250% due 12/01/07+ 1,500,000
450,000 Santa Cruz County, California, Industrial
Development Authority,
5.625% due 11/01/18+ 450,000
300,000 Simi Valley, California, Multifamily Hous-
ing Revenue,
5.500% due 06/01/10++ 300,000
1,000,000 Union City, California, Multifamily Housing
Revenue, (Sierra Green Project), Series
A,
6.000% due 10/01/07+ 1,000,000
TOTAL INVESTMENTS
(Cost $27,871,119*) 90.6% 27,871,119
OTHER ASSETS AND LIABILITIES
(NET) 9.4 2,875,500
NET ASSETS 100.0% $30,746,619
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds payable upon not more than seven calendar
days' notice.
++ Put bonds and notes have demand features to mature within one year.
+++ Variable daily demand notes are payable upon not more than one busi-
ness day's notice.
++++ Variable daily demand notes are payable upon not more than 30 calen-
dar days' notice. The interest rate shown reflects the rate currently
in effect.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
(UNAUDITED) DECEMBER 31, 1994
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 99.2%
MASSACHUSETTS -- 99.2%
$1,000,000 Attleboro, Massachusetts, Bond Anticipation
Notes,
4.500% due 07/07/95 $ 1,001,488
700,000 Barre, Massachusetts, Revenue Anticipation
Notes,
3.950% due 02/01/95 700,000
110,000 Becket, Massachusetts, Bond Anticipation
Notes,
4.110% due 04/18/95 110,000
5,000,000 Boston, Massachusetts, Water & Sewer Com-
mission Revenue,
5.250% due 11/01/24+ 5,000,000
1,000,000 Brockton, Massachusetts, Bond Anticipation
Notes,
5.500% due 04/14/95 1,003,055
390,000 Brookline, Massachusetts, General Obliga-
tion Bonds,
4.250% due 01/15/95 390,242
100,000 Dighton, Massachusetts, Revenue Anticipa-
tion Notes,
4.050% due 01/26/95 100,000
2,500,000 Dracut, Massachusetts, Bond Anticipation
Notes,
3.780% due 01/13/95 2,500,000
1,215,000 Edgartown, Massachusetts, Revenue Anticipa-
tion Notes,
3.210% due 08/18/95 1,215,000
260,000 Everett, Massachusetts, Bond Anticipation
Notes,
6.000% due 10/15/95 263,509
700,000 Harvard, Massachusetts, Revenue Anticipa-
tion Notes,
4.190% due 02/17/95 700,000
1,900,000 Holyoke, Massachusetts, Pollution Control
Revenue,
5.300% due 11/01/13+ 1,900,000
185,866 Hopkinton, Massachusetts, State Aid Antici-
pation Notes,
3.280% due 01/18/95 185,866
370,000 Leicester, Massachusetts, General Obliga-
tion Bonds,
5.500% due 01/15/95 370,400
2,275,000 Marlborough, Massachusetts, Bond Anticipa-
tion Notes,
4.000% due 02/28/95 2,276,755
Massachusetts Bay Transportation Author-
ity:
4,000,000 3.850% due 03/09/95 4,000,000
3,500,000 3.250% due 03/01/14++ 3,500,000
Series A:
2,000,000 4.000% due 02/09/95 2,000,000
1,000,000 3.750% due 03/01/95 1,000,106
415,000 Series B,
4.000% due 03/01/95 415,326
5,000,000 Massachusetts Health & Educational Facili-
ties,
3.750% due 01/13/95 5,000,000
2,600,000 Massachusetts Health & Educational Facili-
ties,
Project A,
5.350% due 01/01/01+ 2,600,000
100,000 Massachusetts Health & Educational Facili-
ties,
Project A, Series C,
5.200% due 07/01/05+ 100,000
3,000,000 Massachusetts Health & Educational Facili-
ties, Series C,
5.300% due 07/01/24+ 3,000,000
7,000,000 Massachusetts Health & Educational Facili-
ties for Boston University, Series H,
Commercial Paper,
3.700% due 01/17/95 7,000,000
Massachusetts Health & Educational Facili-
ties for Capital Asset Program,
100,000 Series B,
5.200% due 07/01/05+ 100,000
2,000,000 Series D,
4.700% due 01/01/35+ 2,000,000
1,900,000 Massachusetts Health & Educational Facili-
ties for Clark University,
5.150% due 12/01/04+ 1,900,000
Massachusetts Health & Educational Facili-
ties for Harvard University,
500,000 8.500% due 10/01/95+ 515,584
1,300,000 Series I,
5.000% due 12/01/16+ 1,300,000
1,945,000 Series L,
5.000% due 08/01/17+ 1,945,000
2,100,000 3.800% due 01/12/95+ 2,100,000
1,340,000 3.800% due 02/09/95 1,340,000
Massachusetts Health & Educational Facili-
ties for Massachusetts General Hospital,
Series D:
120,000 7.625% due 07/01/07++ 122,401
825,000 7.750% due 07/01/20++ 841,504
100,000 7.200% due 07/01/01++ 102,001
2,200,000 Massachusetts Health & Educational Facili-
ties for Massachusetts Institute of Tech-
nology, Series G,
5.250% due 07/01/21+ 2,200,000
3,130,000 Massachusetts Health & Educational Facili-
ties for Newbury College, Series A,
5.250% due 11/01/18+ 3,130,000
4,700,000 Massachusetts Health & Educational Facili-
ties for Tufts University, Series E, Com-
mercial Paper,
4.000% due 08/01/03++ 4,700,000
2,100,000 Massachusetts Health & Educational Facili-
ties for Williams College,
5.900% due 08/01/14+ 2,100,000
2,500,000 Massachusetts Industrial Finance Agency for
Cabot Newburyport Ltd.,
5.750% due 01/01/99+ 2,500,000
765,000 Massachusetts Industrial Finance Agency for
Family YMCA Project,
5.500% due 06/01/09+ 765,000
Massachusetts Industrial Finance Agency:
500,000 (Beverly Enterprises),
6.150% due 04/01/09+ 500,000
2,400,000 (Chestnut Housing Apartments),
5.000% due 08/01/26+ 2,400,000
1,700,000 (Groton School Project),
5.500% due 06/01/19+ 1,700,000
2,100,000 (Hampshire College),
5.500% due 06/01/09+ 2,100,000
1,700,000 (Holyoke Water Power),
5.300% due 05/01/22+ 1,700,000
2,100,000 (New England Deaconness Hospital),
4.600% due 04/01/23+ 2,100,000
400,000 (New England Power Company Project), Se-
ries A,
3.600% due 03/01/18++ 400,000
750,000 Massachusetts Industrial Finance Agency,
Series B,
5.500% due 07/01/08+ 750,000
3,500,000 Massachusetts Industrial Finance Agency,
Refunding Revenue for Berkshire Project,
5.500% due 09/01/20+ 3,500,000
3,985,000 Massachusetts Industrial Finance Agency,
Refunding Revenue, for First Healthcare
Corporation,
5.700% due 04/01/13+ 3,985,000
500,000 Massachusetts Industrial Finance Agency,
General Obligation Bonds, (General Signal
Corporation),
5.250% due 07/01/04+ 500,000
220,000 Massachusetts Industrial Finance Agency,
Refunding Revenue, Series A,
2.350% due 07/01/96+ 220,000
2,400,000 Massachusetts Industrial Finance Agency for
Odgen Haverhill Project,
5.100% due 12/01/06+ 2,400,000
1,100,000 Massachusetts Industrial Finance Agency for
Manhasset Bay Cambridge,
5.150% due 10/01/10+ 1,100,000
Massachusetts Industrial Finance Agency for
Quamco:
2,895,000 Series A,
5.150% due 09/01/01+ 2,895,000
1,300,000 Series B,
5.150% due 09/01/01+ 1,300,000
Massachusetts Industrial Finance Agency,
Pollution Control Revenue, (New England
Power Company):
1,000,000 4.200% due 02/07/95 1,000,000
2,050,000 4.200% due 02/24/95 2,050,000
1,400,000 4.200% due 03/09/95 1,400,000
5,000,000 Massachusetts Municipal Wholesale Electric
Company, Power Supply
5.250% due 07/01/19+ 5,000,000
Massachusetts State, General Obligation
Bonds:
500,000 5.700% due 03/01/95 501,819
4,000,000 5.000% due 06/15/95 4,014,649
610,000 Massachusetts State, Special Obligation,
Series A,
4.500% due 06/01/95 612,451
900,000 Massachusetts State, Series C,
5.850% due 12/01/97+ 900,000
2,060,000 Massachusetts Water Rescource Authority,
6.700% due 04/01/95 2,076,694
750,000 New Bedford, Massachusetts, Regional Voca-
tional Technical High School
3.780% due 01/20/95 750,000
2,050,000 Norfolk, Massachusetts, Hospital Mainte-
nance,
3.900% due 06/09/95 2,050,000
1,800,000 North Andover, Massachusetts, State Aid
Anticipation Notes,
3.790% due 02/02/95 1,800,000
1,300,000 Northborough Industrial Development Revenue
For Trust Realty,
5.625% due 09/01/18+ 1,300,000
1,500,000 Northbrookfield, Massachusetts, Bond Antic-
ipation Notes,
3.930% due 03/02/95+ 1,500,000
2,000,000 Peabody, Massachusetts, Bond Anticipation
Notes,
4.030% due 03/17/95 2,000,000
600,000 Pentucket Regional School District, Revenue
Anticipation Notes,
7.000% due 02/15/95 603,101
172,500 Reading, Massachusetts, General Obligation
Bonds
2.700% due 01/13/95 172,500
105,000 Seekonk, Massachusetts, State Aid Anticipa-
tion Notes,
4.360% due 04/03/95 105,000
700,000 Spencer, Massachusetts, Revenue Anticipa-
tion Notes,
4.000% due 02/02/95 700,089
500,000 Springfield, Massachusetts, Revenue Antici-
pation Notes,
4.650% due 02/23/95 500,536
1,450,000 Wilbraham, Massachusetts, Revenue Anticipa-
tion Notes,
3.500% due 05/30/95 1,446,740
1,000,000 Worcester County, Massachusetts, Revenue
Anticipation Notes,
4.200% due 03/31/95 1,000,000
TOTAL INVESTMENTS
(Cost $133,026,816*) 99.2% 133,026,816
OTHER ASSETS AND LIABILITIES
(NET) 0.8 1,130,899
NET ASSETS 100.0% $134,157,715
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds payable upon not more than seven calendar
days' notice. The interest rate shown reflects the rate currently in
effect.
++ Put bonds and notes have demand features to mature within one year. The
interest rate shown reflects the rate currently in effect.
</TABLE>
See Notes to Financial Statements.
PORTFOLIO OF INVESTMENTS
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
(UNAUDITED) DECEMBER 31, 1994
<TABLE>
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- 96.3%
NEW YORK -- 96.3%
$ 150,000 Broome County, New York, Industrial Devel-
opment Revenue,
5.250% due 12/15/03+ $ 150,000
100,000 Jefferson County, New York, Industrial De-
velopment Revenue,
3.750% due 12/01/12+++ 100,000
100,000 Metropolitan Transportation Authority, New
York,
5.150% due 07/01/21+ 100,000
300,000 Monroe County, New York, Industrial Devel-
opment Agency,
5.150% due 10/01/00+ 300,000
500,000 Monroe County, New York, Revenue Anticipa-
tion Notes,
4.250% due 02/28/95++ 500,540
200,000 Montgomery, New York, Industrial Develop-
ment Agency, (Service Merchandise),
2.900% due 12/31/24+++ 200,000
500,000 Nassau County, New York, Series B,
4.500% due 03/15/95++ 500,249
New York City, New York, Housing Develop-
ment Corporation:
200,000 5.300% due 01/01/16+ 200,000
200,000 5.750% due 12/15/24+ 200,000
500,000 New York City, New York, Housing Develop-
ment Corporation, Special Obligation 96-
A,
5.200% due 08/01/15+ 500,000
New York State Dormitory Authority Reve-
nue:
250,000 6.300% due 05/01/95++ 251,872
300,000 8.750% due 07/01/15++ 312,515
New York State Energy Research & Develop-
ment Authority, Pollution Control Reve-
nue:
300,000 4.600% due 12/01/15++ 300,000
300,000 3.500% due 10/01/29++ 300,000
500,000 3.550% due 10/01/14+ 500,000
800,000 3.650% due 02/09/95++ 800,000
250,000 4.100% due 10/15/15++ 250,000
500,000 5.450% due 11/01/23++ 500,000
100,000 New York State Housing Finance Agency,
(Liberty View Apartments),
5.500% due 11/01/05+ 100,000
New York State Job Development Authority:
225,000 3.750% due 03/01/99+++ 225,000
340,000 Series C,
3.650% due 03/01/00+ 340,000
400,000 New York State Local Assistance Corpora-
tion, Series B,
5.200% due 04/01/23+ 400,000
200,000 New York State Multi-Housing Authority,
5.150% due 11/01/02+ 200,000
New York State Power Authority, Utility
Revenue,
275,000 9.750% due 01/01/98++ 283,252
600,000 3.800% due 03/01/20++ 600,000
315,000 9.625% due 01/01/03++ 321,302
600,000 New York State Power Authority,
3.250% due 02/08/95++ 600,000
500,000 New York State, Series P, General Obliga-
tion,
3.650% due 01/24/95++ 500,000
300,000 Onondaga County, New York, Industrial De-
velopment Agency, Seymor Project,
3.900% due 06/15/97+++ 300,000
600,000 Saratoga Springs, New York, Revenue Antici-
pation
Notes, Series B,
4.750% due 06/23/95++ 600,384
500,000 Suffolk County, New York, Industrial Devel-
opment Center,
5.300% due 01/01/14+ 500,000
1,000,000 Triborough Bridge & Tunnel Authority, Se-
ries J,
7.250% due 01/01/13++ 1,000,000
TOTAL INVESTMENTS
(Cost $11,935,114*) 96.3% 11,935,114
OTHER ASSETS AND LIABILITIES
(NET) 3.7 463,717
NET ASSETS 100.0% $12,398,831
<FN>
* Aggregate cost for Federal tax purposes.
+ Variable rate demand bonds payable upon not more than seven calendar
days' notice.
++ Put bonds and notes have demand features to mature within one year.
The interest rate shown reflects the rate currently in effect.
+++ Variable rate demand notes are payable upon not more than 30 calendar
days' notice. The interest rate shown reflects the rate currently in
effect.
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
(UNAUDITED) DECEMBER 31, 1994
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
ASSETS
Investments, at value
(Cost $27,871,119, $133,026,816 and
$11,935,114, respectively) (Note 1)
See accompanying schedules $ 27,871,119 $ 133,026,816 $ 11,935,114
Cash 723,748 98,977 13,527
Interest receivable 164,342 759,180 128,203
Receivable for Fund shares sold 3,168,341 1,134,677 976,859
TOTAL ASSETS 31,927,550 135,019,650 13,053,703
LIABILITIES
Payable for investment securities purchased 601,890 105,000 601,572
Dividends payable 78,345 374,509 9,461
Payable for Fund shares redeemed 478,972 300,498 28,180
Investment management fee payable (Note 2) 8,639 43,193 3,823
Accrued Trustees' fees and expenses (Note
2) 2,783 12,507 1,390
Distribution fee payable (Note 3) 354 2,824 174
Accrued expenses and other payables 9,948 23,404 10,272
TOTAL LIABILITIES 1,180,931 861,935 654,872
NET ASSETS $ 30,746,619 $ 134,157,715 $ 12,398,831
NET ASSETS consist of:
Undistributed net investment income $ 398 $ -- $ 211
Accumulated net realized gain/
(loss) on investments (233) (63,934) 339
Paid-in capital 30,746,454 134,221,649 12,398,281
TOTAL NET ASSETS $ 30,746,619 $ 134,157,715 $ 12,398,831
</TABLE>
See Notes to Financial Statements.
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
(UNAUDITED) DECEMBER 31, 1994
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
NET ASSETS:
Investor Shares $ 16,095,065 $ 103,478,659 $ 6,346,651
Class R Shares $ 14,651,554 $ 30,679,056 $ 6,052,180
SHARES OUTSTANDING:
Investor Shares 16,094,989 103,532,364 6,346,355
Class R Shares 14,651,465 30,694,979 6,051,926
NET ASSET VALUE:
INVESTOR SHARES
Net assets value, offering and redemption
price per share of beneficial interest
outstanding $ 1.00 $ 1.00 $ 1.00
CLASS R SHARES
Net asset value, offering and redemption
price per share of beneficial interest
outstanding $ 1.00 $ 1.00 $ 1.00
</TABLE>
See Notes to Financial Statements.
STATEMENT OF OPERATIONS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 429,961 $ 1,910,499 $ 179,349
EXPENSES
Investment management fee (Note 2) 42,515 196,447 20,838
Distribution fee (Note 3) 19,063 117,070 8,932
Trustees' fees and expenses (Note 2) 2,576 11,906 1,262
Total expenses 64,154 325,423 31,032
NET INVESTMENT INCOME 365,807 1,585,076 148,317
NET REALIZED GAIN
ON INVESTMENTS (Note 1)
Net realized gain on investments sold dur-
ing the period 6 -- 349
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 365,813 $ 1,585,076 $ 148,666
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE SIX MONTHS ENDED DECEMBER 31, 1994 (UNAUDITED)
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND MONEY FUND MONEY FUND
<S> <C> <C> <C>
Net investment income $ 365,807 $ 1,585,076 $ 148,317
Net realized gain on investments sold dur-
ing the period 6 -- 349
Net increase in net assets resulting from
operations 365,813 1,585,076 148,666
Distributions to shareholders from net in-
vestment income:
Investor Shares (205,534) (1,218,235) (79,710)
Class R Shares (160,274) (366,841) (68,396)
Net increase/(decrease) in net assets from
Fund share transactions (Note 4):
Investor Shares (1,074,513) 16,970,244 (1,664,723)
Class R Shares 4,905,011 10,852,373 592,967
Net increase in net assets 3,830,503 27,822,617 (1,071,196)
NET ASSETS:
Beginning of period 26,916,116 106,335,098 13,470,027
End of period (including undistributed net
investment income of $398 and $211 for
the Dreyfus/Laurel California
Tax-Free Money Fund and the Dreyfus/Lau-
rel New York Tax- Free Money Fund, re-
spectively) $ 30,746,619 $ 134,157,715 $ 12,398,831
</TABLE>
See Notes to Financial Statements.
STATEMENT OF CHANGES IN NET ASSETS
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS
FOR THE YEAR OR PERIOD ENDED JUNE 30, 1994
<TABLE>
<CAPTION>
DREYFUS/ DREYFUS/ DREYFUS/
LAUREL LAUREL LAUREL
CALIFORNIA MASSACHUSETTS NEW YORK
TAX-FREE TAX-FREE TAX-FREE
MONEY FUND* MONEY FUND MONEY FUND*
<S> <C> <C> <C>
Net investment income $ 346,378 $ 2,167,350 $ 204,215
Net realized loss on investments sold dur-
ing the year -- (1,311) --
Net increase in net assets result from op-
erations 346,378 2,166,039 204,215
Distributions to shareholders from net in-
vestment income:
Investor Shares (198,324) (1,317,812) (124,785)
Trust Shares (118,164) (371,662) (78,946)
Institutional Shares (29,890) (477,876) (484)
Net increase/(decrease) in net assets from
Fund share transactions (Note 4):
Investor Shares (3,450,010) (21,462,072) (1,409,966)
Trust Shares 3,338,359 186,693 (2,241,040)
Net increase/(decrease)
in net assets (111,651) (21,276,690) (3,651,006)
NET ASSETS:
Beginning of year 27,027,767 127,611,788 17,121,033
End of year (including undistributed net
investment income of $399 for the Dreyfu-
s/Laurel California
Tax-Free Money Fund) $ 26,916,116 $ 106,335,098 $ 13,470,027
<FN>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD
ENDED ENDED
12/31/94## 6/30/94+++
(UNAUDITED)
<S> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.014 0.012
Less distributions:
Distributions from net investment income (0.014) (0.012)
Net Asset Value, end of period $ 1.00 $ 1.00
Total return++ 1.37% 1.25%
Ratios to average net assets/ supplemental
data:
Net assets, end of period (000's) $16,095 $17,170
Ratio of expenses to average net assets+ 0.60%** 0.47%**
Ratio of net investment income to average
net assets 2.74%** 2.11%**
<FN>
* The Fund commenced operations on March 2, 1988. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as Investor
Shares. The Financial Highlights for the six months ended December 31,
1994 are based upon an Investor Share outstanding. The amounts shown
for the period ended June 30, 1994 were calculated using the perfor-
mance of a Retail Share outstanding from December 1, 1993 to April 3,
1994, and the performance of an Investor Share outstanding from April
4, 1994 to June 30, 1994. The Financial Highlights for the year ended
November 30, 1993 and prior periods are based upon a Retail Share out-
standing.
** Annualized.
*** Net investment income per share before voluntary waiver of fees and
reimbursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994, and for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the
period ended November 30, 1988 were $0.010, $0.016, $0.026, $0.041,
$0.050, $0.053 and $0.028, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994, and for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the pe-
riod ended November 30, 1988 were 0.85%, 1.08%, 0.83%, 0.78%, 0.93%,
1.01% and 1.41%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/93# 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88*
<S> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.023 0.031 0.046 0.056 0.060 0.033
(0.023) (0.031) (0.046) (0.056) (0.060) (0.033)
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
2.41% 3.10% 4.65% 5.75% 6.18% 3.39%
$15,490 $26,987 $27,831 $27,493 $15,745 $ 9,112
0.32% 0.32% 0.32% 0.32% 0.32% 0.67%**
2.40% 3.03% 4.57% 5.58% 6.02% 4.55%**
<FN>
# The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for
this period since use of the undistributed method did not accord with
results of operations.
## Effective October 17, 1994, The Dreyfus Corporation serves as the
Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD PERIOD
ENDED ENDED ENDED
12/31/94## 6/30/94+++ 11/30/93*#
(UNAUDITED)
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.015 0.013 0.020
Less distributions:
Distributions from net investment income (0.015) (0.013) (0.020)
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00
Total return++ 1.50% 1.31% 1.98%
Ratios to average net assets/
supplemental data:
Net assets, end of period (000's) $14,652 $ 9,747 $ 6,408
Ratio of expenses to average net assets+ 0.35%** 0.29%** 0.28%**
Ratio of net investment income to average
net assets 2.99%** 2.29%** 2.13%**
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust Shares. Effective October 17, 1994 Trust Shares were redes-
ignated Class R Shares.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30,
1993 were $0.011 and $0.013, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and November
30, 1993 were 0.67% and 1.03%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
# The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for
this period since use of the undistributed method did not accord with
results of operations.
## Effective October 17, 1994, The Dreyfus Corporation serves as the
Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
SIX
MONTHS YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
12/31/94## 6/30/94# 6/30/93 6/30/92
(UNAUDITED)
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.013 0.018 0.019 0.034
Less distributions:
Distributions from net income (0.013) (0.018) (0.019) (0.034)
Net Asset Value, end of period (000's) $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total return++ 1.31% 1.83% 1.94% 3.36%
Ratios to average net assets/ supplemental
data:
Net assets, end of period (000's) $103,479 $86,505 $15,490 $149,679
Ratio of expenses to average net assets+ 0.60%** 0.70% 0.68% 0.67%
Ratio of net investment income to average
net assets 2.61%** 1.80% 1.98% 3.38%
<FN>
* On February 1, 1993 existing shares of the Fund were designated the
Retail Class and the Fund began offering the Institutional Class and
Investment Class of shares. Effective April 4, 1994 the Retail and In-
stitutional Classes were reclassified as a single class of shares
known as Investor Shares. The Financial Highlights for the six months
ended December 31, 1994 are based upon an Investor Share outstanding.
The amounts shown for the year ended June 30, 1994 were calculated
using the performance of a Retail Share outstanding from July 1, 1993
to April 3, 1994, and the performance of an Investor Share outstanding
from April 4, 1994 to June 30, 1994. The Financial Highlights for the
year ended June 30, 1993 and prior years are based upon a Retail Share
outstanding.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the years ended June 30, 1994, 1993, 1989, 1987,
1986, 1985 and for the period ended June 30, 1984 were $0.017, $0.019,
$0.055, $0.038, $0.044, $0.049 and $0.044, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the years ended June 30, 1994, 1993, 1989,
1987, 1986, 1985 and the period ended June 30, 1984 were 0.78%, 0.69%,
0.70%, 0.64%, 0.79%, 0.86% and 0.82%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
# Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A., served as the Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
6/30/91 6/30/90 6/30/89 6/30/88 6/30/87 6/30/86 6/30/85
<S> <C> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.051 0.056 0.055 0.042 0.039 0.047 0.052
(0.051) (0.056) (0.055) (0.042) (0.039) (0.047) (0.052)
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
4.93% 5.56% 5.62% 4.12% 3.97% 4.69% 5.45%
$160,392 $159,551 $134,941 $146,592 $137,295 $111,095 $100,406
0.64% 0.65% 0.67% 0.65% 0.47% 0.50% 0.55%
5.07% 5.64% 5.45% 4.25% 3.92% 4.71% 5.08%
<FN>
## Effective October 17, 1994, The Dreyfus Corporation serves as the
Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
SIX
MONTHS YEAR PERIOD
ENDED ENDED ENDED
12/31/94## 6/30/94# 6/30/93*
(UNAUDITED)
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.014 0.019 0.007
Less distributions:
Distributions from net investment income (0.014) (0.019) (0.007)
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00
Total return++ 1.44% 1.97% 0.73%
Ratios to average net assets/
supplemental data:
Net assets, end of period (000's) $30,679 $19,830 $19,645
Ratio of expenses to average net assets+ 0.35%** 0.56% 0.57%**
Ratio of net investment income to average
net assets 2.86%** 1.94% 1.78%**
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust Shares. Effective October 17, 1994 Trust Shares were redes-
ignated Class R Shares.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the year ended June 30, 1994 and for the period
ended June 30, 1993 were $0.019 and $0.007, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the year ended June 30, 1994 and for the pe-
riod ended June 30, 1993 were 0.64% and 0.62%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
# Prior to April 4, 1994, The Boston Company Advisors, Inc. served as
the Fund's investment adviser. From April 4, 1994 through October 16,
1994, Mellon Bank, N.A., served as the Fund's investment manager.
## Effective October 17, 1994, The Dreyfus Corporation serves as the
Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
[This Page Intentionally Left Blank]
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD
ENDED ENDED
12/31/94# 6/30/94+++
(UNAUDITED)
<S> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00
Income from investment operations:
Net investment income**** 0.011 0.012
Less distributions:
Distributions from net investment income (0.011) (0.012)
Distribution from net realized capital
gains -- --
Net Asset Value, end of period $ 1.00 $ 1.00
Total return++ 1.15% 1.23%
Ratios to average net assets/ supplemental
data:
Net assets, end of period (000's) $ 6,347 $ 8,011
Ratio of expenses to average net assets+ 0.60%** 0.44%**
Ratio of net investment income to average
net assets 2.24%** 2.12%**
<FN>
* The Fund commenced operations on March 2, 1988. On February 1, 1993
existing shares of the Fund were designated the Retail Class and the
Fund began offering the Institutional Class and Investment Class of
shares. Effective April 4, 1994 the Retail and Institutional Classes
were reclassified as a single class of shares known as Investor
Shares. The Financial Highlights for the six months ended December
31, 1994 are based upon an Investor Share outstanding. The amounts
shown for the period ended June 30, 1994 were calculated using the
performance of a Retail Share outstanding from December 1, 1993 to
April 3, 1994, and the performance of an Investor Share outstanding
from April 4, 1994 to June 30, 1994. The Financial Highlights for the
year ended November 30, 1993 and prior periods are based upon a Re-
tail Share outstanding.
** Annualized.
*** Amount represents less than .001 per Investor Share for the year
ended November 30, 1992.
**** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the period ended June 30, 1994 and for the years
ended November 30, 1993, 1992, 1991, 1990, 1989 and for the period
ended November 30, 1988 were $0.009, $0.008, $0.024, $0.040, $0.047,
$0.050 and $0.026, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the period ended June 30, 1994 and for the
years ended November 30, 1993, 1992, 1991, 1990, 1989 and for the pe-
riod ended November 30, 1988 were 0.97%, 1.29%, 1.03%, 0.93%, 1.03%,
1.10%, and 1.42%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/93 11/30/92 11/30/91 11/30/90 11/30/89 11/30/88*
<S> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
0.021 0.031 0.046 0.054 0.058 0.032
(0.021) (0.031) (0.046) (0.054) (0.058) (0.032)
-- -- *** -- -- -- --
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
2.15% 3.11% 4.65% 5.53% 5.90% 3.19%
$9,356 $11,183 $15,989 $16,870 $14,129 $ 8,929
2.40% 3.03% 0.32% 0.32% 0.32% 0.65%**
2.13% 3.08% 4.58% 5.38% 5.73% 4.33%**
<FN>
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
# Effective October 17, 1994, The Dreyfus Corporation serves as the
Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
FINANCIAL HIGHLIGHTS
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
FOR A CLASS R SHARE OUTSTANDING THROUGHOUT EACH PERIOD*
<TABLE>
<CAPTION>
SIX
MONTHS PERIOD PERIOD
ENDED ENDED ENDED
12/31/94# 6/30/94+++ 11/30/93*
(UNAUDITED)
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income*** 0.012 0.013 0.018
Less distributions:
Distributions from net investment income (0.012) (0.013) (0.018)
Net Asset Value, end of period $ 1.00 $ 1.00 $ 1.00
Total return++ 1.27% 1.32% 1.76%
Ratios to average net assets/
supplemental data:
Net assets, end of period (000's) $ 6,052 $ 5,459 $ 7,700
Ratio of expenses to average net assets+ 0.35%** 0.28%** 0.26%**
Ratio of net investment income to average
net assets 2.49%** 2.27%** 2.12%**
<FN>
* The Fund commenced selling Investment Class shares on February 1,
1993. Effective April 4, 1994 the Investment Class was reclassified as
the Trust Shares. Effective October 17, 1994 Trust Shares were redes-
ignated as Class R shares.
** Annualized.
*** Net investment income per share before waiver of fees and reimburse-
ment of expenses by the investment adviser and/or custodian and/or
transfer agent for the periods ended June 30, 1994 and November 30,
1993 were $0.010 and $0.007, respectively.
+ Annualized expense ratios before voluntary waiver of fees and reim-
bursement of expenses by the investment adviser and/or custodian
and/or transfer agent for the periods ended June 30, 1994 and November
30, 1993 were 0.82% and 1.22%, respectively.
++ Total return represents aggregate total return for the periods indi-
cated.
+++ The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30. Prior to April 4, 1994, The
Boston Company Advisors, Inc. served as the Fund's investment adviser.
From April 4, 1994 through October 16, 1994, Mellon Bank, N.A., served
as the Fund's investment manager.
# Effective October 17, 1994, The Dreyfus Corporation serves as the
Fund's investment manager.
</TABLE>
See Notes to Financial Statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Trust"), The Dreyfu-
s/Laurel Funds, Inc., The Dreyfus/Laurel Funds Trust and The Dreyfus/Lau-
rel Investment Series are all registered open-end investment companies
that are now part of The Dreyfus Family of Funds. The Trust is an invest-
ment company which consists of seven funds: the Dreyfus/Laurel California
Tax-Free Money Fund, the Dreyfus/Laurel Massachusetts Tax- Free Money
Fund, the Dreyfus/Laurel New York Tax-Free Money Fund (collectively, the
"Money Funds") (individually, the "Fund"), the Premier Limited Term Cali-
fornia Municipal Fund, the Premier Limited Term Massachusetts Municipal
Fund, the Premier Limited Term New York Municipal Fund and the Premier
Limited Term Municipal Fund. This report contains financial statements for
the Money Funds. The Trust is a "Massachusetts business trust" and is reg-
istered with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open- end manage-
ment investment company. Each Fund seeks current income exempt from Fed-
eral income tax and state personal income tax. The Money Funds currently
offer two classes of shares: Investor Shares and Class R Shares (effective
October 17, 1994, the Trust Shares were redesignated Class R Shares). In-
vestor Shares are sold primarily to retail investors and bear a distribu-
tion fee. Class R Shares are sold primarily to bank trust departments and
other financial service providers acting on behalf of customers having a
qualified trust or investment account or relationship at such
institutions, and bear no distribution fee. Each class of shares has iden-
tical rights and privileges, except with respect to the distribution fees
and voting rights on matters affecting a single class. The following is a
summary of significant accounting policies consistently followed by each
Fund in the preparation of its financial statements in accordance with
generally accepted accounting principles.
(A) PORTFOLIO VALUATION
The Money Funds invest only in securities that have remaining maturities
of thirteen months or less at the date of purchase. For this purpose,
floating rate or variable rate obligations, which are payable on demand,
but which may otherwise have a stated maturity in excess of thirteen
months, will be deemed to have remaining maturities of thirteen months or
less. Securities of the Money Funds are valued at amortized cost in accor-
dance with Rule 2a-7 of the 1940 Act.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded as of the trade date. Realized gains
and losses on investments sold are recorded on the identified cost basis.
Interest income is recorded on the accrual basis. Investment income and
realized and unrealized gains and losses are allocated based upon the rel-
ative average daily net assets of each class of shares.
(C) DISTRIBUTIONS TO SHAREHOLDERS
Each Fund declares distributions from net investment income on a class
level on each day the Fund is open for business and pays such distribu-
tions no later than the first business day of the next month. Each Fund
may distribute net realized capital gains on a Fund level, if any, annu-
ally or more frequently to maintain its net asset value of $1.00 per
share. Each Fund may be subject to a 4% nondeductible excise tax for cer-
tain undistributed amounts of net investment income and capital gain. Each
Fund expects to make additional distributions to avoid the application of
the excise tax. Income distributions and capital gain distributions on a
Fund level are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These differ-
ences are primarily due to differing treatments of income and gains on
various investment securities held by the Fund, timing differences and the
differing characterization of distributions made by the Fund as a whole.
(D) EXPENSE ALLOCATION
Expenses of each Fund not directly attributable to the operations of any
class of shares are prorated between the classes based upon the relative
average daily net assets of each class. Distribution expense is directly
attributable to a particular class of shares and is charged only to that
class' operations.
(E) FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment com-
pany, if such qualification is in the best interests of its shareholders,
by complying with the requirements of the Internal Revenue Code applicable
to regulated investment companies and by distributing all of its earnings
to shareholders. Therefore, no Federal income tax provision is required.
2. INVESTMENT MANAGEMENT FEE, TRUSTEES' FEES AND OTHER RELATED PARTY
TRANSACTIONS
Effective as of October 17, 1994, the Trust's investment management agree-
ment with Mellon Bank, N.A. ("Mellon Bank") was transferred to The Dreyfus
Corporation (the "Manager"), a wholly-owned subsidiary of Mellon Bank. The
Manager provides, or arranges for one or more third parties to provide,
investment advisory, administrative, custody, fund accounting and transfer
agency services to the Trust. The Manager also directs the investments of
each Fund in accordance with its investment objective, policies and limi-
tations. For these services, each Fund is contractually obligated to pay
the Manager a fee, calculated daily and paid monthly, at the annual rate
of 0.35% of the value of that Fund's average daily net assets. Out of its
fee, the Manager pays all of the expenses of each Fund except brokerage
fees, taxes, interest, Rule 12b-1 distribution fees and expenses, fees and
expenses of non-interested Trustees (including counsel fees) and extraor-
dinary expenses. In addition, the Manager is required to reduce its fee in
an amount equal to each Fund's allocable portion of fees and expenses of
the non- interested Trustees (including counsel).
Prior to October 16, 1994, Mellon Bank served as the Trust's investment
manager pursuant to the investment management agreement described above.
From April 4, 1994 to September 23, 1994, Frank Russell Investment Manage-
ment Company (the "Administrator") served as each Fund's administrator and
provided, pursuant to an administration agreement, various administrative
and corporate secretarial services to each Fund. Mellon Bank, as invest-
ment manager, paid the Administrator's fee out of the management fee de-
scribed above.
Prior to October 17, 1994, Funds Distributor, Inc. served as distributor
of the Trust's shares. Effective as of October 17, 1994, Premier Mutual
Fund Services, Inc. ("Premier") serves as the Trust's distributor. Premier
also serves as the Trust's sub- administrator and, pursuant to a sub-
administration agreement with the Manager, provides various administrative
and corporate secretarial services to the Trust.
No officer or employee of Premier (or of any parent, subsidiary or affili-
ate thereof) receives any compensation from The Dreyfus/Laurel Funds,
Inc., The Dreyfus/Laurel Funds Trust, The Dreyfus/Laurel Tax-Free Munici-
pal Funds or The Dreyfus/Laurel Investment Series (collectively, "The
Dreyfus/Laurel Funds") for serving as an officer or Director/Trustee of
The Dreyfus/Laurel Funds. In addition, no officer or employee of the Man-
ager (or of any parent, subsidiary or affiliate thereof) serves as an of-
ficer or Director/Trustee of The Dreyfus/Laurel Funds. The Dreyfus/Laurel
Funds pays each Director/Trustee who is not an officer or employee of Pre-
mier (or of any parent, subsidiary or affiliate thereof) or of the Manager
$27,000 per annum, $1,000 for each Board meeting attended and $750 for
each Audit Committee meeting attended, and reimburse each Director/Trustee
for travel and out-of-pocket expenses.
3. DISTRIBUTION PLAN
Each Fund has adopted a distribution plan (the "Plan") pursuant to Rule
12b-1 under the 1940 Act relating to its Investor Shares. Under the Plan,
each Fund may pay annually up to 0.25% of the value of the average daily
net assets attributable to its Investor Shares to compensate Premier and
Dreyfus Service Corporation, an affiliate of the Manager, for shareholder
servicing activities and Premier for activities and expenses primarily in-
tended to result in the sale of Investor Shares. Class R Shares bear no
distribution fee.
Under its terms, the Plan shall remain in effect from year to year, pro-
vided such continuance is approved annually by a vote of a majority of the
Trustees and a majority of those Trustees who are not "interested persons"
of the Trust and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
4. SHARES OF BENEFICIAL INTEREST
The Trust has the authority to issue an unlimited number of shares of ben-
eficial interest of each class in each separate series, without par value.
The Trust offers two classes of shares of the Money Funds.
The tables below summarize transactions in Fund shares for the years or
periods indicated. Because each of the Money Funds has sold shares, issued
shares as reinvestments of dividends and redeemed shares only at a con-
stant net asset value of $1.00 per share, the number of shares represented
by such sales, reinvestments and redemptions is the same as the amounts
shown below for such transactions.
DREYFUS/LAUREL CALIFORNIA TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
December 31, 1994 June 30, 1994*+#
<S> <C> <C>
INVESTOR SHARES:
Sold $ 15,561,907 $ 22,619,988
Issued as reinvestment of dividends and
distributions 202,363 225,575
Redeemed (16,838,783) (26,295,573)
Net decrease $ (1,074,513) $ (3,450,010)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
December 31, 1994## June 30, 1994*
<S> <C> <C>
CLASS R SHARES:
Sold $13,708,250 $10,968,762
Issued as reinvestment of dividends and
distributions 109,454 65,613
Redeemed (8,912,693) (7,696,016)
Net increase $ 4,905,011 $ 3,338,359
<FN>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
+ Amounts include $8,676,000 of subscriptions, $28,427 of reinvestments
and $8,004,712 of redemptions for the Institutional Class up to April
4, 1994.
# Effective April 14, 1994 the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor Shares.
## On October 17, 1994, the Trust Shares were redesignated Class R Shares.
</TABLE>
DREYFUS/LAUREL MASSACHUSETTS TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
December 31, 1994 June 30, 1994+#
<S> <C> <C>
INVESTOR SHARES:
Sold $ 79,880,530 $ 139,311,367
Issued as reinvestment of dividends and
distributions 925,418 1,217,369
Redeemed (63,835,704) (161,990,808)
Net increase/(decrease) $ 16,970,244 $ (21,462,072)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
December 31, 1994## June 30, 1994
<S> <C> <C>
CLASS R SHARES:
Sold $ 49,377,211 $ 66,966,216
Issued as reinvestment of dividends and
distributions 199,916 112,247
Redeemed (38,724,754) (66,891,770)
Net increase $ 10,852,373 $ 186,693
<FN>
+ Amounts include $50,504,187 of subscriptions, $63,928 of reinvestments
and $60,326,788 of redemptions for the Institutional Class up to April
4, 1994.
# Effective April 14, 1994 the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor Shares.
## On October 17, 1994, the Trust Shares were redesignated Class R Shares.
</TABLE>
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
December 31, 1994 June 30, 1994*+#
<S> <C> <C>
INVESTOR SHARES:
Sold $ 1,913,557 $ 4,170,313
Issued as reinvestment of dividends and
distributions 77,855 123,051
Redeemed (3,656,135) (5,703,330)
Net decrease $(1,664,723) $(1,409,966)
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED
December 31, 1994## June 30, 1994*
<S> <C> <C>
CLASS R SHARES:
Sold $ 4,972,872 $ 3,604,985
Issued as reinvestment of dividends and
distributions 10,575 3,922
Redeemed (4,390,480) (5,849,947)
Net increase/(decrease) $ 592,967 $(2,241,040)
<FN>
* The Fund changed its fiscal year end to June 30. Prior to this, the
Fund's fiscal year end was November 30.
+ Amounts include $11,467 of subscriptions, $468 of reinvestments and
$9,120 of redemptions for the Institutional Class up to April 4, 1994.
# Effective April 14, 1994 the Retail and Institutional Classes of shares
were reclassified as a single class of shares known as Investor Shares.
## On October 17, 1994, the Trust Shares were redesignated Class R Shares.
</TABLE>
5. CAPITAL LOSS CARRYFORWARD
As of June 30, 1994, the California Tax-Free Money Fund had available for
Federal tax purposes unused capital loss carryforwards of $239 expiring in
the year 2000, the Massachusetts Tax-Free Money Fund had unused capital
loss carryforwards of $52,102 expiring in the year 2002, and the New York
Tax-Free Money Fund has unused capital loss carryforwards of $10 expiring
in the year 2001.
6. CONCENTRATION OF CREDIT
Each Fund invests primarily in debt obligations issued by the Fund's re-
spective state (i.e., California, Massachusetts, or New York) and such
state's political subdivisions, municipalities, agencies and public au-
thorities who obtain funds for various public purposes. Each Fund is more
susceptible to factors adversely affecting issuers of its respective state
municipal securities than is a municipal bond fund that is not
concentrated in these issuers to the same extent.
