July 27, 1995
THE DREYFUS/LAUREL TAX-FREE MUNICIPAL FUNDS _
DREYFUS/LAUREL CALIFORNIA
TAX-FREE MONEY FUND
DREYFUS/LAUREL NEW YORK TAX-FREE MONEY FUND
SUPPLEMENT TO PROSPECTUS
DATED APRIL 10, 1995
At a meeting of the Board of Trustees held on July 26, 1995, the
Board approved a new Investment Management Agreement (the "New Agreement")
between The Dreyfus/Laurel Tax-Free Municipal Funds, on behalf of
Dreyfus/Laurel California Tax-Free Money Fund and Dreyfus/Laurel New York
Tax-Free Money Fund (each a "Fund") and The Dreyfus Corporation ("Dreyfus")
providing for a fee payable to Dreyfus at the annual rate of .45 of 1% of
each Fund's average daily net assets. The fee payable to Dreyfus under the
New Agreement would represent an increase of .10% from the fee currently paid
to Dreyfus under the existing Investment Management Agreement, although
Dreyfus has agreed that it would limit its fee to .35 of 1% of average daily
net assets for one year following the change in the management fee. In
addition, under the New Agreement, certain transaction charges would be
payable to each Fund's transfer agent out of shareholder accounts in
connection with shareholders utilizing certain services. These transaction
costs would include a $5 charge for exchanges out of each Fund, wire
redemptions, Dreyfus TELETRANSFER redemptions, and closeouts of shareholder
accounts and a $2 charge for redemption checks ("Shareholder Transaction
Costs"). Dreyfus would continue to be responsible for arranging and paying
for administrative, custody, fund accounting, and certain transfer agency
services out of its fee under the New Agreement. Shareholders of each Fund,
and of each Class of each Fund, will be asked to approve the New Agreement at
meetings to be held on or about November 15, 1995 and, if approved, the New
Agreement would become effective on or about November 20, 1995 (the
"Effective Date"). Shareholders of the Funds prior to the Effective Date
would not be subject to the Shareholder Transaction Costs.
(CONTINUED ON REVERSE SIDE)
The Board also approved certain other changes for the Funds which
would allow the Funds to join Dreyfus' "BASIC" Family of Money Funds, as
described below, and which are contingent upon shareholders' approval of the
New Agreement. If shareholders approve the New Agreement, these additional
changes would become effective on the Effective Date.
The Board approved eliminating each Fund's Distribution Plan for
Investor shares and converting the Fund into a single class fund, as well as
eliminating the availability of certain shareholder service features,
including the Dreyfus Auto-Exchange Privilege, Dreyfus-AUTOMATIC Asset
Builder, Dreyfus Dividend Options, Dreyfus Government Direct Deposit
Privilege, Dreyfus Payroll Savings Plan and the Automatic Withdrawal Plan.
TheBoard also approved increasing each Fund's minimum initial and subsequent
investment requirements from $2,500 to $25,000 and from $100 to $1,000,
respectively, and the minimum balance below which accounts may be
involuntarily redeemed by the Funds from $500 to $10,000. Shareholders of the
Funds prior to the Effective Date would not be subject to the increased
minimums.
Finally, the Board approved changing the Funds' names from
Dreyfus/Laurel California Tax-Free Money Fund to "Dreyfus BASICCalifornia
Municipal Money Market Fund" and Dreyfus/Laurel New York Tax-Free Money Fund
to "Dreyfus BASIC New York Municipal Money Market Fund."
LSTTFMs072795
