<PAGE> PAGE 1
000 B000000 08/31/99
000 C000000 798169
000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000
I000000 3.0 000 J000000 A
001 A000000 STRONG MUNICIPAL FUNDS, INC.
001 B000000 811-4770
001 C000000 4145777366
002 A000000 PO BOX 2936
002 B000000 MILWAUKEE
002 C000000 WI
002 D010000 53201
002 D020000 2936
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
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007 C010100 1
007 C010200 2
007 C010300 3
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007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
020 A000001 GOLDMAN, SACHS & COMPANY
020 C000001 1
020 A000002 J.P. MORGAN SECURITIES, INC.
020 C000002 1
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020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 2
022 A000001 LEHMAN BROTHERS, INC.
022 C000001 50999
022 D000001 29000
<PAGE> PAGE 2
022 A000002 GOLDMAN, SACHS & COMPANY
022 C000002 31702
022 D000002 36725
022 A000003 STRONG INVESTMENTS, INC.
022 C000003 32450
022 D000003 27650
022 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 C000004 21355
022 D000004 24755
022 A000005 J. P. MORGAN SECURITIES, INC.
022 C000005 10786
022 D000005 11500
022 A000006 SALOMON SMITH BARNEY, INC.
022 C000006 15378
022 D000006 2510
022 A000007 JOHN NUVEEN & COMPANY, INC.
022 C000007 12062
022 D000007 0
022 A000008 B. C. ZIEGLER & COMPANY
022 C000008 8159
022 D000008 2000
022 A000009 MORGAN STANLEY, DEAN WITTER & COMPANY
022 C000009 5850
022 D000009 1973
022 A000010 BLOUNT PARRISH & ROTON, INC.
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<PAGE> PAGE 3
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008 A000301 STRONG CAPITAL MANAGEMENT, INC.
008 B000301 A
008 C000301 801-10724
008 D010301 MILWAUKEE
008 D020301 WI
008 D030301 53201
008 D040301 2936
011 A000301 STRONG INVESTMENTS, INC.
011 B000301 8-32608
011 C010301 MILWAUKEE
011 C020301 WI
011 C030301 53201
011 C040301 2936
012 A000301 STRONG CAPITAL MANAGEMENT, INC.
012 B000301 84-1599
012 C010301 MILWAUKEE
012 C020301 WI
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013 A000301 PRICEWATERHOUSECOOPERS LLP
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014 A000301 STRONG INVESTMENTS, INC.
014 B000301 8-32608
014 A000302 W.H. REAVES & COMPANY, INC.
014 B000302 8-22142
015 A000301 FIRSTAR BANK MILWAUKEE, N.A.
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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080 A000300 NATIONAL UNION FIRE INSURANCE
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SIGNATURE JOHN WIDMER
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000798169
<NAME> STRONG MUNICIPAL FUNDS, INC.
<SERIES>
<NUMBER> 3
<NAME> STRONG SHORT-TERM HIGH YIELD MUNICIPAL FUND
<MULTIPLIER> 1,000
<S> <C>
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<FISCAL-YEAR-END> Aug-31-1999
<PERIOD-START> Sep-01-1998
<PERIOD-END> Aug-31-1999
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<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 20,836
<NUMBER-OF-SHARES-REDEEMED> (13,107)
<SHARES-REINVESTED> 568
<NET-CHANGE-IN-ASSETS> 81,060
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
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<OVERDIST-NET-GAINS-PRIOR> (83)
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<AVERAGE-NET-ASSETS> 152,613
<PER-SHARE-NAV-BEGIN> 10.17
<PER-SHARE-NII> 0.50
<PER-SHARE-GAIN-APPREC> (0.18)
<PER-SHARE-DIVIDEND> (0.50)
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</TABLE>
To the Shareholders and Board of Directors of
Strong Short-Term High Yield Municipal Fund (a series of Strong Municipal
Funds, Inc.)
In planning and performing our audit of the financial statements and financial
highlights of Strong Short-Term High Yield Municipal Fund (a series of Strong
Municipal Funds, Inc.) (the "Fund") for the year ended August 31, 1999, we
considered its internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and financial highlights and
to comply with the requirements of Form N-SAR, not to provide assurance on
internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements and financial highlights
for external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements and financial highlights being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we noted no
matters involving internal control and its operation, including controls over
safeguarding securities, that we consider to be material weaknesses as defined
above as of August 31, 1999.
This report is intended solely for the information and use of management, the
Board of Directors of the Fund and the Securities and Exchange Commission and is
not intended to be and should not be used by anyone other than these specified
parties.
PricewaterhouseCoopers LLP
October 6, 1999
