Dreyfus BASIC California Municipal Money Market Fund
_______________________________________
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus BASIC
California Municipal Money Market Fund. Effective November 20, 1995, the
Dreyfus/Laurel California Tax-Free Money Fund changed its name to the Dreyfus
BASIC California Municipal Money Market Fund. The Fund was restructured to be
similar to other Dreyfus "BASIC" money market funds. Also effective November
20, 1995, the Fund entered into a new Investment Management Agreement with
the Dreyfus Corporation, terminated its .25% Rule 12b-1 Plan for its then
existing Investor shares and eliminated its separate "Investor" and "Class R"
class designations and became a single class fund without a separate class
designation.
For its semi-annual reporting period ended December 31, 1995, your Fund
produced an annualized yield of 3.33% per share. The annualized yield figure
represents the Investor shares for the period July 1, 1995 through November
20, 1995 and the single class for November 20, 1995 through December 31,
1995. Income dividends of approximately $.033 per share were paid during the
period. Reinvesting these dividends and calculating the effect of compounding
resulted in an annualized effective yield of 3.38%.* These dividends were
exempt from Federal and State of California personal income taxes, although
some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
The Economy
Evidence that economic activity remained sluggish and that inflation
continued to be under control moved the Federal Reserve Board to further ease
the Federal Funds rate in December. (The Federal Funds rate is the rate at
which the nation's banks borrow money from each other and all other
short-term rates are based on it.) This was the second reduction for this
important short-term rate in 1995, the first occurring in July. The latest 25
basis-point reduction in December put the rate at 5.50%. Major incentives for
this additional reduction were the inflation report in November _ the
Consumer Price Index was flat for the first time in 41/2 years _ and the
generally slow rate of economic growth. As it did in July, the Federal
Reserve left unchanged the discount rate _ the rate at which the Federal
Reserve lends to member banks. The discount rate remained at 5.25% throughout
1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the slow rate of new job creation, sluggish growth in wages and
salaries, and the continued spread of corporate cost-related layoffs. The
lethargic pace of consumer spending last year culminated in one of the worst
holiday sales periods since the business slump in 1990-1991, despite steep
price markdowns by retailers.
Industrial production climbed modestly during the year. By November, the
nation's factories operated at only 83.1% of capacity, down for the third
consecutive month. This was a reflection of weakening demand and further
evidence of the diminishing pressure to raise prices. Furthermore,
inventories built up by year-end, another sign of slackening demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the
<PAGE>
economy. As we go forward without a final budget agreement, reductions in
annually appropriated spending will tend to retard the economy. With an
agreement, the combination of cuts in appropriations and other spending
reductions should have the same effect.
There are strong indications that inflation is under control. Until
midyear 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now the focus seems to have shifted to actions designed to avoid
recession.
Market Environment/Portfolio Activity
Short-term interest rates fell in response to the Federal Reserve's
reduction of the Federal Funds rate in December. The yield on one-year tax
exempt securities fell approximately 50 basis points to end the year at 3.5%.
Demand for tax exempt money market instruments remained strong throughout the
fourth quarter as money market funds experienced positive cash contributions
from investors.
The weighted average maturity of the Fund on 12/31/95 was about 30 days.
Fund redemptions resulted in a reduction of the average maturity from about
64 days on 7/1/95, the beginning of the reporting period. The significant
position in variable rate securities (62.9% of total assets at year-end)
allowed the Fund to benefit from the high returns available from the short
maturity sector of the money market yield curve.
The California economy continues to grow and the unemployment rate
declined to 7.7% by year-end 1995, compared to the unemployment rate average
of 8.6% throughout 1994. The improving economy bolstered state cash balances
beyond required liquidity levels and thus avoided any mandated cuts in state
spending.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Angela M. Deni signature logo]
Angela M. Deni
Portfolio Manager
January 16, 1996
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
Statement of Investments December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments_100.0% Amount Value
______________________________________ ______ ______
<S> <C> <C>
Anaheim Housing Authority, MFHR, VRDN (Bel Age Project)
5.10%, Series A (LOC; Federal National Mortgage Association) (a,b)...... $ 600,000 $ 600,000
Bay Area Government Association, LR, VRDN (Pooled Project)
4.70% (LOC; National Westminster Bank) (a,b)............................ 190,000 190,000
Brea Redevelopment Agency, Sub Tax Allocation, Prerefunding
(Redevelopment Project Area AB) 8.356%, 9/15/96......................... 300,000 316,962
California Educational Facilities Authority, Revenue, Prerefunding:
(Institutional Technology Project)
8.625%, 1/1/96 (Escrowed in; U.S. Treasury Securities)................ 200,000 204,000
(Santa Clara University Project)
9.125%, 2/1/96 (Escrowed in; U.S. Treasury Securities)................ 1,200,000 1,228,702
California Health Facilities Finance Authority, Revenue:
(Good Samaritan Health Systems)
3.50%, Series A, 2/1/96 (LOC; Bank of America) (b).................... 735,000 735,000
VRDN:
(Catholic Health Care):
4.85%, Series B (Insured; MBIA and SBPA; Morgan Guaranty Trust Co.) (a). 200,000 200,000
4.85%, Series C (Insured; MBIA and Liquidity Facility; Morgan
Guaranty Trust Co.) (a)........................................... 300,000 300,000
(Granada Hills Community) 5.15%, Series C (LOC; Mitsubishi Bank) (a,b) 400,000 400,000
Refunding (Memorial Health Services) 4.90% (a)........................ 1,200,000 1,200,000
(Sutter Health) 4.80%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b) 800,000 800,000
California Housing Finance Agency, Multi-Family Revenue, Refunding, VRDN
5%, Series C (LOC; Federal National Mortgage Association) (a,b)......... 100,000 100,000
California Pollution Control Financing Authority:
IDR, VRDN (Southdown Inc.) 4.20% (LOC; Societe Generale) (a,b).......... 300,000 300,000
PCR:
(Champlin Petroleum Union Pacific)
4.55%, 6/1/96 (LOC; Union Pacific Railroad) (b)..................... 1,150,000 1,150,000
Refunding:
CP (Pacific Gas and Electric)
3.45%, Series E, 1/18/96 (LOC; Morgan Guaranty Trust Co.) (b)..... 800,000 800,000
VRDN:
(Shell Oil Co. Project) 4.75% (a)................................. 100,000 100,000
(Shell Oil Co. Project) 4.75%, Series A (a)....................... 300,000 300,000
(Shell Oil Co. Project) 4.75%, Series C (a)....................... 500,000 500,000
RRR, VRDN:
(Burney Forest Produce Project)
5%, Series A (LOC; National Westminster Bank) (a,b)................. 1,800,000 1,800,000
(Delano Project) 5.10% (LOC; ABN-Amro Bank) (a,b)..................... 400,000 400,000
Refunding:
(Ultra Power Malaga) 5.15%, Series A (LOC; Bank of America) (a,b)... 200,000 200,000
(Ultra Power Rocklin) 5.15%, Series A (LOC; Bank of America) (a,b).. 600,000 600,000
California Statewide Communities Development Corporation, Revenue, VRDN:
(Karcher Property Project) 4.90%, Series C (LOC; Bayerische Vereinsbank) (a,b) 1,000,000 1,000,000
(Johanson Project)
4.90%, Series E (LOC; California State Teacher Retirement System) (a,b). 300,000 300,000
(Tri-Valley) 3.35%, Series F (LOC; ABN-Amro Bank) (a,b)................. 300,000 300,000
</TABLE>
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
_______________________________________
Statement of Investments (continued) December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments (continued) Amount Value
______________________________________ ______ ______
<S> <C> <C>
Concord, MFMR, VRDN (Crossroads)
5%, Series B (LOC; Federal National Mortgage Association) (a,b)......... $ 200,000 $ 200,000
Contra Costa Transportation Authority, Sales Tax Revenue, VRDN
4.50%, Series A (Insured; FGIC) (a)..................................... 500,000 500,000
East Bay Municipal Utility District, Water Systems Revenue, Refunding,
Prerefunding
7%, 3/1/96 (Escrowed in; U.S. Treasury Bills)........................... 700,000 717,800
Foothill Eastern Transportation Corridor Agency, Toll Road, VRDN
4.80%, Series C (LOC; Credit Suisse) (a,b).............................. 1,200,000 1,200,000
Huntington Park Redevelopment Agency, Revenue
(Huntington Park Persons Storage II)
4.05%, 12/1/96 (LOC; Sanwa Bank) (b).................................... 440,000 440,000
Long Beach, Harbor Revenue, CP
3.65%, Series A, 2/9/96 (Line of Credit; Canadian
Imperial Bank of Commerce) (a).......................................... 1,000,000 1,000,000
Los Angeles County, TRAN 4.50%, 7/1/96 (LOC: Bank of America, Credit Suisse,
Morgan Guaranty Trust Co., Swiss Bank Corp., Union Bank of Switzerland and
West Deutsche Landesbank) (b)........................................... 500,000 501,675
Los Angeles County Community Development Commission, COP, VRDN
(Willowbrook Project)
4.85% (LOC; Wells Fargo Bank) (a,b)..................................... 1,300,000 1,300,000
Los Angeles County Metropolitan Transportation Authority, Revenue, RAN
5%, Series A, 4/25/96 (LOC; Swiss Bank Corp.) (b)....................... 1,000,000 1,002,313
Los Angeles Multi-Family Revenue, VRDN (Masselin Manor)
4.80% (LOC; Bank of America) (a,b)...................................... 300,000 300,000
Los Angeles Regional Airports Improvement Corporation, LR, VRDN:
(American Airlines) 4.95%, Series C (LOC; Wachovia Bank Of Georgia) (a,b) 300,000 300,000
(Los Angeles International-LAX) 4.95% (LOC; Societe Generale) (a,b)..... 1,000,000 1,000,000
Metropolitan Water District, CP 3.40%, Series B, 2/9/96
(Liquidity Facility; Westdeusche Landesbank)............................ 800,000 800,000
Moorpark, Multi-Family Revenue, VRDN (LeClub Apartments Project)
4.80%, Series A (LOC; Citibank) (a,b)................................... 500,000 500,000
Newport Beach, Revenue, VRDN (Hoag Presbyterian Memorial Hospital)
4.90% (SBPA; Credit Suisse) (a)......................................... 300,000 300,000
Palm Springs Community Development Agency, COP, VRDN (Headquarters Hotel)
4.80% (LOC; Citibank) (a,b)............................................. 400,000 400,000
Regional Airports Improvement Corporation, Terminal Facilities Completion
Revenue,
VRDN (Los Angeles International Airport) 5.10% (LOC; Societe Generale) (a,b) 200,000 200,000
Rincon Del Diablo Municipal Water District, COP (Rincon Public Facilities
Corp.)
3.90%, 2/1/96 (LOC; Fuji Bank) (b)...................................... 675,000 675,000
Sacramento County, COP, VRDN (Administration Center and Court House Project)
4.75% (LOC; Union Bank of Switzerland) (a,b)............................ 500,000 500,000
Sacramento Municipal Utilities District, CP
3.55%, Series H, 1/12/96 (LOC: Bank of America and Morgan Guaranty Trust
Co.) (b) ............................................................... 900,000 900,000
San Diego County, MFHR, VRDN (Nationwide)
5%, Series C (LOC; Federal National Mortgage Association) (a,b)......... 100,000 100,000
San Diego Housing Authority, MFHR, VRDN (Market Street Square Project)
5.25%, Series G (LOC; Barclays Bank) (a,b).............................. 335,000 335,000
</TABLE>
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
Statement of Investments (continued) December 31, 1995 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments (continued) Amount Value
______________________________________ ______ ______
<S> <C> <C>
San Francisco City and County Housing Authority, MFHR, VRDN (737 Post Project)
4.95%, Series D (LOC; Banque Nationale DeParis) (a,b)................... $ 200,000 $ 200,000
Southern Public Power Authority, Revenue, Refunding, VRDN (Transmission
Project)
4.75% (Insured; AMBAC and LOC; Swiss Bank Corp.) (a,b).................. 200,000 200,000
Stockton, MFHR, VRDN (Mariners Pointe Association)
4.90%, Series A (LOC; Bank of America) (a,b)............................ 500,000 500,000
______
TOTAL INVESTMENTS (cost $28,096,657)........................................ $28,096,452
======
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
_______________________________________________________
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
COP Certificate of Participation MFMR Multi-Family Mortgage Revenue
CP Commercial Paper PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company RAN Revenue Anticipation Notes
IDR Industrial Development Revenue RRR Resources Recovery Revenue
LOC Letter of Credit SBPA Standby Bond Purchase Agreement
LR Lease Revenue TRAN Tax and Revenue Anticipation Notes
MBIA Municipal Bond Investors Assurance VRDN Variable Rate Demand Notes
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings
________________________________________________________
Moody's or Standard & Poors's Percentage of Value
____ _________ __________
<S> <C> <C>
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 85.7%
Aaa/Aa (d) AAA/AA (d) 14.3
___
100.0%
===
</TABLE>
Notes to Statement of Investments:
______________________________________-
(a) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(b) Secured by letters of credit. At December 31, 1995, 72.6% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foriegn banks, government agencies and corporations, of which Bank of
America provided letters of credit to 10.1% of the Fund's net assets.
(c) P1 and A1 are the highest ratings assigned tax-exempt commercial paper by
Moody's and Standard & Poor's, respectively.
(d) Notes which are not MIG or SP rated are represented by bond ratings of
the issuers.
See notes to financial statements.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
Statement of Assets and Liabilities December 31, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $28,096,657)-see Statement of
Investments .......................................................... $28,096,452
Interest receivable..................................................... 228,934
Other receivable........................................................ 254
28,325,640
______
LIABILITIES:
Due to The Dreyfus Corporation_Note 2(a)............................... $ 11,690
Cash overdraft due to Custodian......................................... 156,529
Trustees' fee payable................................................... 1,871 170,090
____ ______
NET ASSETS.................................................................. $28,155,550
======
REPRESENTED BY:
Paid-in capital......................................................... $28,155,357
Accumulated undistributed investment income-net......................... 398
Accumulated gross unrealized (depreciation) on investments.............. (205)
______
NET ASSETS at value applicable to 28,155,152 shares outstanding
(unlimited number of shares of Beneficial Interest authorized).......... $28,155,550
======
NET ASSET VALUE, offering and redemption price per share
($28,155,550 / 28,155,152 shares of Beneficial Interest outstanding).... $1.00
===
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
_______________________________________
Statement of Operations six months ended December 31, 1995 (Unaudited)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest Income......................................................... $429,594
Expenses:
Investment management fee_Note 2(a).................................... $40,663
Distribution fee_Note 2(b)............................................. 13,250
Trustees' fees and expenses_Note 2(c).................................. 1,127
____
Total Expenses........................................................ 55,040
Less_reduction in management fee
due to undertakings_Note 2(a)......................................... 2,332
____
Net Expenses.......................................................... 52,708
____
INVESTMENT INCOME_NET................................................ 376,886
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments_Note 3................................ $ 782
Net unrealized (depreciation) on investments............................ (205)
____
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS....................... 577
____
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $377,463
====
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1995 June 30,
(Unaudited) 1995*
_________ ______
<S> <C> <C>
OPERATIONS:
Investment income_net............................................ $ 376,886 $ 842,212
Net realized gain on investments.................................. 782 6
Net unrealized (depreciation) on investments for the period....... (205) _
______ ______
Net Increase In Net Assets Resulting From Operations............ 377,463 842,218
______ ______
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income_net:
Investor shares................................................. (252,444) (468,028)
Class R shares.................................................. (124,044) (374,184)
Net realized gain on investments:
Investor shares.................................................. (549) _
______ ______
Total Dividends............................................... (377,037) (842,212)
______ ______
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Investor shares................................................. 29,381,337 32,912,720
Class R shares.................................................. 14,319,111 32,480,825
Dividends reinvested:
Investor shares................................................. 210,324 462,650
Class R shares.................................................. 65,137 265,428
Cost of shares redeemed:
Investor shares................................................. (16,974,470) (35,007,105)
Class R shares.................................................. (21,813,892) (35,063,063)
______ ______
Increase (Decrease) In Net Assets From Beneficial
Interest Transaction........................................ 5,187,547 (3,948,545)
______ ______
Total Increase (Decrease) In Net Assets..................... 5,187,973 (3,948,539)
NET ASSETS:
Beginning of period............................................... 22,967,577 26,916,116
______ ______
End of period (including undistributed investment income_net;
$398 at December 31, 1995)...................................... $28,155,550 $22,967,577
====== ======
<FN>
_________
* On October 17, 1994, the Trust shares were redesignated Class R shares.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
Financial Highlights
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Investor shares
____________________________________________________________________________
Six Months
Ended Year Period
December 31, Ended Ended Year Ended November 30,
1995 June 30, June 30, __________________________________
(Unaudited) 1995(4) 1994(1)(2) 1993(1)(3) 1992(1) 1991(1)
______ ____ _____ _____ ___ ___
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
___ ___ ___ ___ ___ ___
Investment Operations;
Investment income_net.............. 0.016 0.031 0.012 0.023 0.031 0.046
___ ___ ___ ___ ___ ___
Distributions;
Dividends from investment income_net (0.016) (0.031) (0.012) (0.023) (0.031) (0.046)
___ ___ ___ ___ ___ ___
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=== === === === === ===
TOTAL INVESTMENT RETURN.................. 3.27%(5) 3.10% 1.25% 2.41% 3.10% 4.65%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .52%(5) .60% .47%(5) .32% .32% .32%
Ratio of net investment income to
average net assets................. 3.30%(5) 3.07% 2.11%(5) 2.40% 3.03% 4.57%
Decrease reflected in above expense ratios
due to undertakings by Manager..... .03%(5) .38%(5) .76% .51% .46%
Net Assets, end of period
(000's Omitted).................... $28,156 $15,538 $17,170 $15,490 $26,987 $27,831
<FN>
__________-
(1) 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 year ended June 30, 1995
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 outsanding 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 outstanding.
(2) 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.
(3) 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 net investment income method did not
accord with results of operations.
(4) Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager.
(5) Annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
Financial Highlights (continued)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class R shares(8)
________________________________________________________________
Six Months Ended Year Ended Period Ended Period Ended
December 31, 1995 June 30, June 30, November 30,
PER SHARE DATA: (Unaudited) 1995(2) 1994(1)(3) 1993(1)(4)
_______- ____ _____- _____
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
___ ___ ___ ___
Investment Operations;
Investment income-net............... 0.013 0.033(5) 0.013(5) 0.020(5)
___ ___ ___ ___
Distributions;
Dividends from investment income-net (0.013) (0.033) (0.013) (0.020)
___ ___ ___ ___
Net asset value, end of period...... _ $ 1.00 $ 1.00 $ 1.00
=== === === ===
TOTAL INVESTMENT RETURN................. _ 3.35% 1.31% 1.98%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .35%(6) .35%(7) .29%(6)(7) .28%(6)(7)
Ratio of net investment income to
average net assets................ 3.40%(6) 3.32% 2.29%(6) 2.13%(6)
Net Assets, end of period (000's Omitted) _ $7,430 $9,747 $6,408
<FN>
________-
(1) 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 redesignated Class R
shares. The table above is based upon an Investment Class share outstanding
from February 1, 1993 to April 3, 1994 and a Trust share outstanding from
April 4, 1994 to October 16, 1994.
(2) Effective October 17, 1994, The Dreyfus Corporation began serving as the
Fund's investment manager.
(3) 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.
(4) The per share amounts have been calculated using the monthly average
shares method, which more appropriately presents per share data for the
period since use of the undistributed net investment income method did not
accord with results of operations.
(5) Net investment income per share before waiver of fees and reimbursement
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.
(6) Annualized.
(7) Annualized expense ratios before voluntary waiver of fees and
reimbursement 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.
(8) Effective November 21, 1995, the Fund converted to a single Class Fund,
with the existing R shares converted into Investor shares.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1_Significant Accounting Policies:
The Dreyfus/Laurel Tax-Free Municipal Funds (the "Trust") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company and operates as a series company
currently offering seven series including the Dreyfus BASIC California
Municipal Money Market Fund (the "Fund"). The Dreyfus Corporation ("Manager")
serves as the Fund's investment adviser. The Manager is a direct subsidiary
of Mellon Bank, N.A. ("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Distributor, located at One Exchange
Place, Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings, Inc.,
the parent company of which is Boston Institutional Group, Inc.
On July 26, 1995, the Fund's Trustees approved a change to the Fund's
name, effective November 20, 1995, from "Dreyfus/Laurel California Tax-Free
Money Fund" to "Dreyfus BASIC California Municipal Money Market Fund."
Prior to November 21, 1995, the Fund was authorized to issue two classes
of shares: Investor shares and Class R shares. Investor shares are sold
primarily to retail investors and bear a distribution fee. Class R shares are
sold primarily to bank trust departments and other financial service
providers (including Mellon Bank and its affiliates) acting on behalf of
customers having a qualified trust or investment account or relationship at
such institution, and bear no distribution fee. Each class of shares has
identical rights and privileges, except with respect to the distribution fee
and voting rights on matters affecting a single class. The Fund currently
offers Investor shares only. Effective November 21, 1995, the Fund converted
to a single Class Fund, with the existing R shares converted into Investor
shares.
Investment Income, net of expenses (other than class specific expenses)
and realized and unrealized gains and losses are allocated daily to each
class of shares based upon the relative proportion of net assets of each
class.
(a) Portfolio Valuation: Investments are valued at amortized cost in
accordance with 2a-7 of the Investment Company Act of 1940, which has been
determined by the Fund's Board of Trustees to represent the fair value of the
Fund's investments.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00 for the Fund; the Fund has adopted certain investment,
portfolio valuation and dividend and distribution policies to enable it to do
so. There is no assurance, however, that the Fund will be able to maintain a
stable net asset value of $1.00.
(b) Securities Transactions and Investment Income: Securities
transactions are recorded on a trade date basis. Interest income, adjusted
for amortization of premiums and original issue discounts on investments, is
earned from settlement date and recognized on the accrual basis. Realized
gain and loss from securities transactions are recorded on the identified
cost basis.
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(c) Distributions to Shareholders: It is the policy of the Fund to
declare dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain, if any, are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(d) Federal Income Taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $233
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to June 30, 1995. If not
applied, the carryover expires in fiscal 2000.
At December 31, 1995, the cost of investments for federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
NOTE 2_Investment Management Fee and Other Transactions With Affiliates:
(a) Investment Management Fee: Pursuant to an Investment Management
agreement with the Manager, 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 Fund. The Manager also directs
the investments of the Fund in accordance with its investment objective,
policies and limitations. For these services, the Fund is contractually
obligated to pay the Manager a fee, calculated daily and paid monthly, at the
annual rate of .45% of the value of the Fund's average daily net assets. The
Manager has undertaken through November 19, 1996 to limit its unitary fee to
.35 of 1% of the Fund's average daily net assets excluding certain fees
outlined below. Out of its fee, the Manager pays all of the expenses of the
Fund except brokerage fees, taxes, interest, Rule 12b-1 distribution fees and
expenses, fees and expenses of non-interested Trustees (including counsel
fees) and extraordinary expenses. In addition, the Manager is required to
reduce its fee in an amount equal to the Fund's allocable portion of fees and
expenses of the non-interested Trustees (including counsel). The reduction in
management fee, pursuant to the undertakings, amounted to $2,332 for the six
months ended December 31, 1995.
(b) Distribution Plan: The 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, the Fund may pay annually up to .25% of the value of
the average daily net assets attributable to its Investor shares to
compensate the Distributor and Dreyfus Service Corporation, an affiliate of
the Manager, for shareholder servicing activities and the Distributor for
activities primarily intended to result in the sale of Investor shares. The
Class R shares bear no distribution fee. For the six months ended December
31, 1995, the distribution fee for the Investor shares was $13,250.
Under its terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of majority of those
Trustees who are not "interested persons" of the
<PAGE>
Dreyfus BASIC California Municipal Money Market Fund
______________________________________-
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
Investment Company and who have no direct or indirect financial interest
in the operation of the Plan or in any agreement related to the Plan.
(c) Trustees' Fees: Each trustee who is not an "interested person" as
defined in the Act receives $27,000 per year, $1,000 for each Board meeting
attended and $750 for each Audit Committee attended and is reimbursed for
travel and out-of-pocket expenses. These expenses are paid in total by the
following funds: the Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel Tax-Free
Municipal Funds, and the Dreyfus/Laurel Funds Trust. In addition the
Chairman of the Board receives an annual fee of $75,000 per year. These fees
and expenses are charged and allocated to each series based on net assets.
(d) Concentration of Risk: The Fund follows an investment policy of
investing primarily in municipal obligations of one state. Economic changes
affecting the state and certain of its public bodies and municipalities may
affect the ability of issuers within the state to pay interest on, or repay
principal of municipal obligations held by the Fund.
<PAGE>
[Dreyfus lion "d" logo]
Dreyfus
Basic California
Municipal Money Market Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
Mellon Trust
One Cabot Road
Medford, MA 02155
Administrator
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 307/707SA9512
[Dreyfus logo]
<PAGE>
Dreyfus BASIC
California Municipal
Money Market Fund
Semi-Annual
Report
December 31, 1995
<PAGE>
