<PAGE>
ANNUAL REPORT
---------------------
DREYFUS PREMIER STATE
MUNICIPAL BOND FUND
NEW JERSEY SERIES
---------------------
APRIL 30, 1998
(DREYFUS LION LOGO)
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- ------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier State
Municipal Bond Fund - New Jersey Series for the 12-month period ended April
30, 1998 as shown in the following table:
TOTAL RETURN* DISTRIBUTION RATE**
------------- -------------------
Class A shares.................. 9.48% 4.45%
Class B shares.................. 8.85% 4.17%
Class C shares.................. 8.55% 3.82%
ECONOMIC REVIEW
The United States is now in its eighth year of economic expansion.
Inflation continues to rise at the slowest pace since
1964, and the unemployment rate has fallen to a level not seen in 25 years.
Not surprisingly, consumer confidence has soared. Along with continued
evidence of the robustness of the economy have come heightened expectations
that the Federal Reserve Board (the "Fed") will raise interest rates in a
preemptive move to avoid a reignition of inflation. The last increase in
short-term rates came in March 1997 when the Federal Open Market Committee
(the policy-making arm of the Fed) hiked the target rates for Federal Funds
by one quarter of a percent to 5.5%. (The Federal Funds rate is the rate of
interest that banks charge one another for overnight loans.)
Inflation has remained benign on all fronts, even in the tight labor
market, an area closely watched by the Fed for signs of incipient inflation.
The Labor Department's Employment Cost Index (the "ECI"), a measure of wage,
salary and benefit costs, suggests that wage inflation so far is not a
problem. In fact, the first quarter increase in the ECI (0.7%) was its
smallest quarterly rise in two years. Another inflation gauge, the
broad-based Gross Domestic Product Price Deflator, rose at an annual rate of
only 0.9% in the first quarter, its lowest rate since 1964. Inflation as
measured by the Consumer Price Index (a measure of prices of a fixed basket
of goods bought by a typical consumer, including food, transportation,
shelter, utilities and clothing, and other items) has been similarly tame.
Prices at the consumer level have risen at an annual rate of about 1.5% over
the reporting period. The lack of inflation has been even more dramatic at
the production level of the economy where prices have fallen: in the 12
months ended April 30, the Producer Price Index declined 1.8%. Such a
generally tepid price environment has been partly fostered by the economic
problems in Asia which have suppressed worldwide demand for commodities,
particularly oil.
Reflecting a level of confidence not seen in three decades, consumers
increased their spending over the reporting period, the first-quarter rate
rising at the fastest pace in six years. Not surprisingly, the growth rate in
new-home construction over the reporting period was the strongest in four
years. Plentiful and well-paying jobs (total wage and salary income is 7%
higher than a year ago), low interest rates, the relative absence of
inflation and investment market gains have resulted in a financially healthy
consumer with a corresponding propensity to spend. Strong domestic demand for
lower-priced imports has contributed further to the quiescent inflation
environment while offsetting the drag on the economy resulting from the Asian
financial crisis. It is still widely expected that the Asian economic
slowdown will have a further dampening effect on the U. S. economy. Although
the surge in domestic spending has masked the full impact of the fall in
<PAGE>
Asian demand, our trade deficit has reached a ten-year high, a dramatic sign
of deterioration. Expectation of an economic slowdown may be a reason why the
Fed has been reluctant to raise short-term interest rates.
The production side of the economy has remained robust. Factory
utilization has been high, production rates strong, and while exports to Asia
have fallen sharply, they are growing in the rest of the world. Such
resilience has been characteristic of one of the longest, most healthy
economic advances in our history. Yet we remain mindful that the concept of
an economic cycle is not dead, nor is inflation, and we are alert for
indications of a resurgence in price pressures.
MARKET ENVIRONMENT
Long-term taxable interest rates continued to trend lower through
mid-January due to a mix of economic turmoil in Asia and good domestic
inflation news. The 30-year benchmark Treasury bond yield troughed on
January 12 at 5.69%, boosted by non-traditional buyers in a flight to quality
out of Asian markets and into U.S. Government securities. Since then,
however, Asian markets have stabilized somewhat and shifted the focus of the
bond market back to U.S. economic fundamentals. Of particular concern to
bond market participants is the increasing tightness of the labor market and
the potential for future wage inflation. This concern effectively capped the
bond rally and pushed long Treasury yields up to 5.95% on April 30, down from
6.96% at the start of the 12-month period.
Longer maturity municipal bonds slightly underperformed their taxable
counterparts during the reporting period as the tax-exempt arena saw a surge
in volume as rates trended lower. The new issue volume included both advance
refundings of already existing debt, and municipalities and agencies taking
on new debt at attractive rates. This increase in supply more than offset
strong demand for municipals as the municipal/Treasury yield ratio (as
measured by the Bond Buyer Revenue Bond Index /30-year Treasury yield)
increased from 91% to nearly 93% by April 30. From an historic perspective,
municipals are very attractive at these percentages relative to Treasuries.
In addition, tax-exempt supply traditionally decreases as the summer months
approach, thus offering the prospect for municipal out-performance in the
months ahead.
THE PORTFOLIO
The supply of New Jersey tax-exempt paper (which includes Puerto Rico
issues) increased dramatically during the reporting period. Deals of note
include $709 million NJ Transportation Authority, $410 million NJ general
obligations, and five separate hospital issues ranging in size from $50 to
$100 million. Also of major importance were four large Puerto Rico deals
that were between $500 million and $1.2 billion. With the direction of
long-term interest rates uncertain at best, we attempted to reposition the
portfolio with securities that offer greater potential for price appreciation
without increasing the risk profile of the Fund. This was done by selling
bonds with less desirable structures and purchasing several of the new issues
at attractive levels. We have maintained a nucleus of high coupon,
income-generating securities which should perform well in times of
uncertainty. At present, approximately 45% of the Fund is invested in
securities which are rated "A" or better and we will attempt to increase this
percentage as credit spreads are currently very narrow.
<PAGE>
Looking forward, issuance should decrease as the summer months approach.
However, we will continue to look for opportunities to sell securities with
inferior call features and/or liquidity and replace them with new issues that
offer greater potential for price appreciation. In conclusion, the tug of
war between foreign economic crises and unusually tame U.S. inflation
indicators that has left long-term interest rates range-bound since January
cannot go on indefinitely. We will remain alert for signals of the next
trend for long-term rates and stand ready to adjust the portfolio
accordingly.
Sincerely,
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration the maximum initial sales
charge in the case of Class A shares, or the contingent deferred sales
charge imposed on redemptions in the case of Class B shares and Class C
shares. Income may be subject to state and local income taxes for non-New
Jersey residents.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the maximum offering
price per share at the end of the period in the case of Class A shares, or
the net asset value per share in the case of Class B shares and Class C
shares, adjusted for capital gain distributions. Some income may be
subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES APRIL 30, 1998
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES CLASS A SHARES
AND CLASS B SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
$13,418
Lehman Brothers
Municipal Bond Index*
$12,428
CHART Dreyfus Premier State Municipal Bond
Fund, New Jersey Series
(Class B Shares)
$12,407
Dreyfus Premier State Municipal Bond
Fund, New Jersey Series
(Class A Shares)
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- ------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
- --------------------------------------------------------- ---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
Period Ended 4/30/98 Sales Charge Sales Charge (4.5%) Period Ended 4/30/98 Redemption Redemption*
- -------------------- ------------------ --------------- -------------------- ----------- ---------------------
1 Year 9.48% 4.51% 1 Year 8.85% 4.85%
From Inception (5/3/94) 6.78 5.56 From Inception (5/3/94) 6.23 5.60
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES
- --------------------------------------------------------------
<S> <C> <C>
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 4/30/98 No Redemption Redemption**
- -------------------- ------------- ---------------------
1 Year 8.55% 7.55%
From Inception (12/4/95) 4.30 4.30
<FN>
- ------------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in each of the Class A
shares and Class B shares of Dreyfus Premier State Municipal Bond Fund, New
Jersey Series on 5/3/94 (Inception Date) to a $10,000 investment made in the
Lehman Brothers Municipal Bond Index on that date. For comparative purposes,
the value of the Index on 4/30/94 is used as the beginning value on 5/3/94.
All dividends and capital gain distributions are reinvested. Performance for
Class C shares will vary from the performance of both Class A and Class B
shares shown above due to differences in charges and expenses.
The Series invests primarily in New Jersey municipal securities and its
performance shown in the line graph takes into account the maximum initial
sales charge on Class A shares and the maximum contingent deferred sales
charge on Class B shares and all other applicable fees and expenses. Unlike
the Series, the Lehman Brothers Municipal Bond Index is an unmanaged total
return performance benchmark for the long-term, investment-grade,
geographically unrestricted tax exempt bond market, calculated by using
municipal bonds selected to be representative of the municipal market
overall. The Index does not take into account charges, fees and other
expenses and is not limited to investments principally in New Jersey
municipal obligations. These factors can contribute to the Index potentially
outperforming the Series. Further information relating to Series
performance, including expense reimbursements, if applicable, is contained in
the Financial Highlights section of the Prospectus and elsewhere in this
report.
* The maximum contingent deferred sales charge for Class B shares is 4% and
is reduced to 0% after six years.
** The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
</FN>
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-100% AMOUNT VALUE
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
NEW JERSEY-85.7%
Camden County Improvement Authority, Revenue (Health Care Redevelopment
Project-Cooper Health System Obligation Group)
5.875%, 2/15/2015....................................................... $ 100,000 $ 103,012
Camden County Pollution Control Financing Authority, Solid Waste Disposal
and Resource Recovery System Revenue
7.50%, 12/1/2009........................................................ 500,000 496,710
East Orange Board of Education COP
(AGH Leasing Inc) Zero Coupon, 8/1/2017 (Insured; FSA).................. 1,420,000 520,643
Essex County Improvement Authority:
Guaranteed LR:
County Social Services Facilities 5.20%, 10/1/2027.................... 200,000 191,996
(Sportsplex Project) 5.625%, 10/1/2023 (Insured; AMBAC) (a)........... 345,000 351,934
Utility System Revenue (Orange Franchise Acquisition Project)
5.75%, 7/1/2027 (Insured; MBIA)....................................... 500,000 520,665
Mercer County Improvement Authority, Revenue
(County Courthouse Project) 5.75%, 11/1/2017............................ 500,000 531,610
New Jersey Economic Development Authority, Revenue:
First Mortgage:
(Cadbury Corp. Project) 5.50%, 7/1/2018 (Insured; ACA) (b)............ 250,000 248,750
Refunding:
(The Evergreens):
6%, 10/1/2017............................................... 650,000 667,264
6%, 10/1/2022............................................... 700,000 718,592
(Fellowship Village) 5.50%, 1/1/2018............................ 500,000 490,130
Water Facilities (New Jersey American Water Co. Inc. Project)
6.50%, 4/1/2022 (Insured; FGIC)....................................... 500,000 538,505
New Jersey Educational Facilities Authority, Revenue:
(Monmouth University) 5.80%, 7/1/2022................................... 395,000 405,420
Refunding (Trenton State College) 6%, 7/1/2019 (Insured; AMBAC)......... 500,000 530,010
New Jersey Health Care Facilities Financing Authority, Revenue:
(General Hospital Center at Passaic) 6.75%, 7/1/2019 (Insured; FSA)..... 550,000 655,413
Refunding:
(Holy Name Hospital Issue) 6%, 7/1/2025............................... 500,000 520,190
(Saint Elizabeth Hospital Obligation Group) 6%, 7/1/2020.............. 2,225,000 2,324,280
New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue
6.05%, 10/1/2028 (Insured; MBIA)........................................ 500,000 526,520
New Jersey Turnpike Authority, Turnpike Revenue, Refunding
6.50%, 1/1/2016......................................................... 220,000 251,946
Passaic County Utilities Authority, Solid Waste System Revenue
7%, 11/15/2007.......................................................... 575,000 560,688
Port Authority of New York and New Jersey,
Special Obligation Revenue, Special Project
(JFK International Air Terminal) 5.75%, 12/1/2022 (Insured; MBIA)....... 585,000 604,984
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
- ---------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
NEW JERSEY (CONTINUED)
South Jersey Transportation Authority, LR
(Raytheon Aircraft Service Inc. Project) 6.15%, 1/1/2022................ $ 500,000 $ 528,280
Union County, Refunding 5.20%, 9/1/2012 (Insured; MBIA)..................... 320,000 328,454
U.S. RELATED-14.3%
Puerto Rico Housing Bank and Finance Agency, SFMR
6.25%, 4/1/2029......................................................... 490,000 515,255
Puerto Rico Ports Authority, Special Facility Revenue
(American Airlines) 6.30%, 6/1/2023..................................... 1,500,000 1,586,205
-----------
TOTAL INVESTMENTS
(cost $14,142,177)...................................................... $14,717,456
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ACA American Capital Access Financial FSA Financial Security Assurance
Guaranty Corporation LR Lease Revenue
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company SFMR Single-Family Mortgage Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
AAA Aaa AAA 34.6%
AA Aa AA 3.6
A A A 6.8
BBB Baa BBB 40.5
BB Ba BB 3.8
Not Rated (d) Not Rated (d) Not Rated (d) 10.7
------
100.0%
======
<FN>
NOTES TO STATEMENT OF INVESTMENTS:
- ------------------------------------------------------------------------------------------------------------------------
(a) Wholly held by custodian as collateral for delayed-delivery security.
(b) Purchased on a delayed-delivery basis.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
(e) At April 30, 1998, the Fund had $5,727,630 (37.9%) of net assets invested
in securities whose payment of principal and interest is dependent upon
revenues generated from health care projects.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1998
<TABLE>
<CAPTION>
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments...... $14,142,177 $14,717,456
Cash........................................................ 403,906
Interest receivable......................................... 242,623
Prepaid expenses............................................ 15,837
-----------
15,379,822
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates............... 6,911
Due to Distributor.......................................... 7,575
Payable for investment securities purchased................. 246,597
Accrued expenses............................................ 13,269
-----------
274,352
-----------
NET ASSETS............................................................................. $15,105,470
===========
REPRESENTED BY: Paid-in capital............................................. $14,452,828
Accumulated net realized gain (loss) on investments......... 77,363
Accumulated net unrealized appreciation (depreciation)
on investments-Note 4..................................... 575,279
-----------
NET ASSETS............................................................................. $15,105,470
===========
</TABLE>
NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
----------- ----------- -----------
<S> <C> <C> <C>
Net Assets................................................ $ 4,454,424 $10,533,408 $ 117,638
Shares Outstanding........................................ 340,654 805,757 8,988
NET ASSET VALUE PER SHARE................................. $13.08 $13.07 $13.09
====== ====== ======
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1998
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $ 850,792
EXPENSES: Management fee-Note 3(a)................... $ 81,625
Distribution fees-Note 3(b)................ 49,840
Shareholding servicing costs-Note 3(c)..... 37,102
Registration fees.......................... 14,465
Professional fees.......................... 10,956
Prospectus and shareholders' reports....... 8,751
Custodian fees............................. 2,441
Trustees' fees and expenses-Note 3(d)...... 189
Loan commitment fees-Note 2................ 151
Miscellaneous.............................. 960
--------
TOTAL EXPENSES................. 206,480
Less-reduction in management fee due to
undertaking-Note 3(a).................. (4,579)
--------
NET EXPENSES......................... 201,901
----------
INVESTMENT INCOME-NET....................................................... 648,891
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments $173,353
Net unrealized appreciation (depreciation)
on investments......................... 451,390
--------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 624,743
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,273,634
==========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED NINE MONTHS ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997* JULY 31, 1996
-------------- ----------------- -------------
<S> <C> <C> <C>
OPERATIONS:
Investment income-net.................................... $ 648,891 $ 416,181 $ 572,174
Net realized gain (loss) on investments.................. 173,353 46,136 150,113
Net unrealized appreciation (depreciation) on investments 451,390 (39,245) (76,768)
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS................................ 1,273,634 423,072 645,519
----------- ----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares....................................... (232,360) (161,823) (234,320)
Class B shares....................................... (413,730) (254,207) (337,766)
Class C shares....................................... (2,801) (151) (88)
Net realized gain on investments:
Class A shares....................................... (42,097) (55,413) --
Class B shares....................................... (86,582) (101,848) --
Class C shares....................................... (960) (69) --
----------- ----------- -----------
TOTAL DIVIDENDS.................................... (778,530) (573,511) (572,174)
----------- ----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares....................................... 1,041,919 294,836 977,750
Class B shares....................................... 3,248,633 1,349,856 3,045,391
Class C shares....................................... 122,271 18 6,000
Dividends reinvested:
Class A shares....................................... 168,831 134,012 134,625
Class B shares....................................... 317,071 209,733 176,239
Class C shares....................................... 3,459 203 88
Cost of shares redeemed:
Class A shares....................................... (1,770,440) (746,605) (927,041)
Class B shares....................................... (2,029,142) (1,696,406) (1,191,057)
Class C shares....................................... (10,307) (5,000) --
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS............... 1,092,295 (459,353) 2,221,995
----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS.... 1,587,399 (609,792) 2,295,340
NET ASSETS:
Beginning of Period...................................... 13,518,071 14,127,863 11,832,523
----------- ----------- -----------
End of Period.............................................. $15,105,470 $13,518,071 $14,127,863
=========== =========== ===========
<FN>
- --------------------
*The Fund changed its fiscal year end from July 31 to April 30.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES
----------------------------------------------------
YEAR ENDED NINE MONTHS ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997* JULY 31, 1996
-------------- ----------------- -------------
<S> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
CLASS A
-------
Shares sold........................................ $ 80,858 $ 23,143 $ 76,280
Shares issued for dividends reinvested............. 12,944 10,476 10,439
Shares redeemed.................................... (136,071) (58,150) (71,136)
----------- ---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.... (42,269) (24,531) 15,583
=========== ========== ==========
CLASS B
-------
Shares sold........................................ 250,509 106,673 236,936
Shares issued for dividends reinvested............. 24,297 16,392 13,678
Shares redeemed.................................... (156,284) (132,446) (93,155)
----------- ---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.... 118,522 (9,381) 157,459
=========== ========== ==========
CLASS C
-------
Shares sold........................................ 9,427 1 466
Shares issued for dividends reinvested............. 263 16 7
Shares redeemed.................................... (792) (401) --
----------- ---------- ----------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.... 8,898 (384) 473
=========== ========== ==========
<FN>
- --------------------
*The Fund changed its fiscal year end from July 31 to April 30.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- --------------------------------------------------------------------------------
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>
CLASS A SHARES
------------------------------------------------------------------
YEAR ENDED JULY 31,
YEAR ENDED NINE MONTHS ENDED -----------------------------
PER SHARE DATA: APRIL 30, 1998 APRIL 30, 1997(1) 1996 1995 1994(2)
-------------- ----------------- ------- ------ --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $12.63 $12.79 $12.71 $12.58 $12.50
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net.......................... .61 .42 .59 .71 .18
Net realized and unrealized gain (loss)
on investments................................. .56 (.02) .08 .13 .08
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS............... 1.17 .40 .67 .84 .26
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net........... (.61) (.42) (.59) (.71) (.18)
Dividends from net realized gain on investments (.11) (.14) -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS............................ (.72) (.56) (.59) (.71) (.18)
------ ------ ------ ------ ------
Net asset value, end of period................. $13.08 $12.63 $12.79 $12.71 $12.58
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(3)......................... 9.48% 4.25%(4) 5.31% 7.01% 2.07%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ 1.02% 1.20%(4) 1.14% .10% --
Ratio of net investment income to average
net assets..................................... 4.73% 4.39%(4) 4.55% 5.60% 5.25%(4)
Decrease reflected in above expense ratios due
to undertakings by the Manager
(limited to the expense limitation provision
of the management agreement)................. .03% .10%(4) .08% 1.35% 2.50%(4)
Portfolio Turnover Rate........................ 50.78% 110.12%(5) 28.14% 43.48% --
Net Assets, end of period (000's Omitted)...... $4,454 $4,837 $5,212 $4,981 $2,318
<FN>
- -----------------------
(1) The Fund changed its fiscal year end from July 31 to April 30.
(2) From May 4, 1994 (commencement of operations) to July 31, 1994.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- -------------------------------------------------------------------------------
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 B SHARES
------------------------------------------------------------------
YEAR ENDED JULY 31,
YEAR ENDED NINE MONTHS ENDED -----------------------------
PER SHARE DATA: APRIL 30, 1998 APRIL 30, 1997(1) 1996 1995 1994(2)
-------------- ----------------- ------- ------ --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period........... $12.63 $12.79 $12.71 $12.58 $12.50
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net.......................... .55 .37 .52 .65 .16
Net realized and unrealized gain (loss)
on investments................................. .55 (.02) .08 .13 .08
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS............... 1.10 .35 .60 .78 .24
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net........... (.55) (.37) (.52) (.65) (.16)
Dividends from net realized gain on investments (.11) (.14) -- -- --
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS............................ (.66) (.51) (.52) (.65) (.16)
------ ------ ------ ------ ------
Net asset value, end of period..................... $13.07 $12.63 $12.79 $12.71 $12.58
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(3)......................... 8.85% 3.74%(4) 4.79% 6.48% 1.94%(5)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........ 1.53% 1.69%(4) 1.63% .61% .50%(4)
Ratio of net investment income to average
net assets..................................... 4.20% 3.88%(4) 4.04% 5.00% 4.69%(4)
Decrease reflected in above expense ratios due
to undertakings by the Manager
(limited to the expense limitation provision
of the management agreement)................. .03% .09%(4) .08% 1.29% 2.50%(4)
Portfolio Turnover Rate........................ 50.78% 110.12%(5) 28.14% 43.48% --
Net Assets, end of period (000's Omitted)...... $10,533 $8,680 $8,910 $6,852 $2,373
<FN>
- -----------------------
(1) The Fund changed its fiscal year end from July 31 to April 30.
(2) From May 4, 1994 (commencement of operations) to July 31, 1994.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- --------------------------------------------------------------------------------
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 C SHARES
-------------------------------------------------------
YEAR ENDED NINE MONTHS ENDED YEAR ENDED
PER SHARE DATA: APRIL 30, 1998 APRIL 30, 1997(1) JULY 31, 1996(2)
-------------- ----------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period....................... $12.64 $12.78 $13.21
------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net.................................. .50 .35 .32
Net realized and unrealized gain (loss) on investments. .56 -- (.43)
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS....................... 1.06 .35 (.11)
------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net................... (.50) (.35) (.32)
Dividends from net realized gain on investments........ (.11) (.14) --
------ ------ ------
TOTAL DISTRIBUTIONS.................................... (.61) (.49) (.32)
------ ------ ------
Net asset value, end of period......................... $13.09 $12.64 $12.78
====== ====== ======
TOTAL INVESTMENT RETURN(3)................................. 8.55% 3.72%(4) (1.21%)(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................ 1.91% 1.97%(4) 1.95%(4)
Ratio of net investment income to average net assets... 3.65% 3.62%(4) 3.68%(4)
Decrease reflected in above expense ratios
due to undertakings by the Manager
(limited to the expense limitation provision
of the management agreement)......................... .06% .76%(4) .02%(4)
Portfolio Turnover Rate................................ 50.78% 110.12%(5) 28.14%
Net Assets, end of period (000's Omitted).............. $118 $1 $6
<FN>
- -----------------------
(1) The Fund changed its fiscal year end from July 31 to April 30.
(2) From December 4, 1995 (commencement of initial offering) to July 31,
1996.
(3) Exclusive of sales load.
(4) Annualized.
(5) Not annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Premier State Municipal Bond Fund (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 thirteen series, including the New Jersey Series (the
"Fund"). The Fund's investment objective is to maximize current income exempt
from Federal and, where applicable, from State income taxes, without undue
risk. The Dreyfus Corporation (the "Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of MellonBank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
$.001 par value shares in the following classes of shares: Class A, Class B
and Class C shares. Class A shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") imposed on Class B share redemptions made within six
years of purchase (five years for shareholders beneficially owning Class B
shares on November 30, 1996) and Class C shares are subject to a CDSC imposed
on Class C shares redeemed within one year of purchase. Other differences
between the classes include the services offered to and the expenses borne by
each class and certain voting rights.
The Trust accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost 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. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
(C) DIVIDENDS 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 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, if any, 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.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. During the period ended
April 30, 1998, the Fund did not borrow under the Facility.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .55 of 1% of the value of the Fund's
average daily net assets and is payable monthly. The Manager has undertaken
from May 1, 1997 through April 30, 1998, to reduce the management fees paid
by the Fund, to the extent that the Fund's aggregate annual expenses
(excluding 12b-1 distribution plan fees, taxes, brokerage, commitment fees,
interest on borrowings and extraordinary expenses) exceed an annual rate of
1.25% of the value of the Fund's average daily net assets. The reduction in
management fee, pursuant to the undertaking, amounted to $4,579 during the
period ended April 30, 1998.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $4,816 during the period ended April 30, 1998, from commissions
earned on sales of the Fund's shares.
(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .50 of 1% of the value of the average
daily net assets of Class B shares and .75 of 1% of the value of the average
daily net assets of Class C shares. During the period ended April 30, 1998,
Class B and Class C shares were charged $49,265 and $575, respectively,
pursuant to the Distribution Plan.
(C) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services.
The services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid
to Service Agents. During the period ended April 30, 1998, Class A, Class B
and Class C shares were charged $12,278, $24,633 and $191, respectively,
pursuant to the Shareholder Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the
period ended April 30, 1998, the Fund was charged $7,136 pursuant to the
transfer agency agreement.
(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1998
amounted to $7,515,073 and $7,299,427, respectively.
At April 30, 1998, accumulated net unrealized appreciation on investments
was $575,279, consisting of $618,501 gross unrealized appreciation and
$43,222 gross unrealized depreciation.
At April 30, 1998, 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).
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- ------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier State Municipal
Bond Fund, New Jersey Series (one of the Funds constituting the Dreyfus
Premier State Municipal Bond Fund) as of April 30, 1998, and the related
statement of operations for the year then ended, the statement of changes in
net assets and financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of April 30, 1998 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Premier State Municipal Bond Fund, New Jersey Series at
April 30, 1998, the results of its operations for the year then ended, the
changes in its net assets and the financial highlights for each of the
indicated periods, in conformity with generally accepted accounting
principles.
ERNST & YOUNG LLP
New York, New York
June 3, 1998
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY SERIES
- ------------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended April 30, 1998:
-- all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are
New Jersey residents, New Jersey personal income taxes), and
-- the Fund hereby designates $.0391 per share as a long-term capital gain
distribution (of which 28.12% is subject to the 20% maximum Federal tax
rate) of the $.1113 per share paid on December 4, 1997.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1998 calendar year
on Form 1099-DIV which will be mailed by January 31, 1999.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, NEW JERSEY SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 380/381AR984
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, NEW JERSEY
SERIES CLASS A SHARES AND CLASS B SHARES AND THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
DREYFUS DREYFUS
PREMIER PREMIER
STATE STATE
MUNICIPAL MUNICIPAL
LEHMAN BOND FUND, BOND FUND,
BROTHERS NEW JERSEY NEW JERSEY
PERIOD MUNICIPAL SERIES SERIES
BOND (CLASS A (CLASS B
INDEX * SHARES) SHARES)
5/3/94 10,000 9,549 10,000
4/30/95 10,665 10,142 10,569
4/30/96 11,513 10,706 11,101
4/30/97 12,276 11,333 11,694
4/30/98 13,418 12,407 12,428
*Source: Lehman Brothers
