<PAGE>
Annual Report
---------------------
DREYFUS PREMIER STATE
MUNICIPAL BOND FUND
TEXAS SERIES
---------------------
April 30, 1998
[Lion Logo]
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- ------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report performance for the Dreyfus Premier State
Municipal Bond Fund -- Texas Series for the 12-month period ended April 30,
1998, as shown in the following table:
TOTAL RETURN* DISTRIBUTION RATE**
------------- -------------------
Class A shares.................. 10.03% 4.68%
Class B shares.................. 9.53% 4.39%
Class C shares.................. 9.24% 4.13%
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
a robust economy have come heightened expectations that the Federal Reserve
Board (the "Fed") might 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 rate 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 Departmen'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 and
services bought by a typical consumer, including food, transportation,
shelter, utilities 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 relative absence of an increase in the rate 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 our 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. The surge in
domestic spending has masked the full effect of the fall in Asian demand for
our products, but our trade deficit has reached a ten-year high, a dramatic
sign of deterioration. Indications that our economy may be beginning to slow
may also be causing the Fed to be reluctant to raise short-term interest
rates.
<PAGE>
The production side of the economy has remained robust. Factory
utilization is high, production rates strong, and, although 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
The supply of new issues in Texas has been rather strong over the last
year. This was especially true of the first four months of 1998, when many
small and large issuers sold debt. The Fund has been able to purchase some new
issue debt at attractive levels because of this heavy supply. On the other
hand, demand has remained fairly strong because secondary supply is usually
low. Hence, the Fund was able to slowly sell bonds which had achieved our
price goals. This was especially true in April 1998, when the municipal bond
market became weak and new issues were priced at extremely attractive levels.
The Fund intends to continue to purchase both primary and secondary issues
that represent value when they become available.
Municipals have gone from being fairly valued when compared to U.S.
Treasury bonds to currently being considered very good values because
municipal supply increased as bond yields declined. This trend is especially
true of long-maturity bonds, where the bulk of new-issue supply has
traditionally been found. New-issue supply normally declines as we approach
summer, while demand should increase because of heavy interest payments and
bond maturities on July 1, 1998. If that scenario recurs, municipals may then
have a good chance of outperforming the Treasury market.
THE PORTFOLIO
In general, the Fund has maintained a defensive investment posture and has
purchased modest premium bonds which we expect should perform well in a
declining market. In the spring of 1997 and again in the spring of 1998, when
interest rates rose, the Fund reversed that strategy and purchased deep
discount securities with higher yields. These bonds represented excellent
value because they were out of favor with many institutional fund managers,
and were purchased at a substantial discount when compared to the rest of the
municipal market. This strategy remains in place, but would likely be reversed
if interest rates were to begin to fall and deep discounts could no longer be
purchased at attractive yields.
The Fund is constantly selling bonds priced at modest discounts which have
achieved our price objective and are yielding a low return. Certain types of
investors tend to favor this type of bond, so the Fund can frequently take
advantage of this situation. Since the Fund is either buying discounts or
premiums at attractive yields, it can afford to sell these issues when they
become slight discounts because they have achieved our performance goals.
Lower rated issues remain very expensive when compared to higher rated
securities. The Fund continues to take advantage of this tight spread
relationship by favoring higher rated securities which are traditionally more
liquid. This strategy will give the Fund more flexibility to react to a weak
market which can experience liquidity constraints.
The Fund's Class A shares had a one-year total return as of April 30, 1998
of 10.03%,* which compares favorably to the Lipper Texas Municipal Bond
average of 8.84%. Because the Fund positioned itself defensively in late 1997
and early 1998 when interest rates were low, it was able to take advantage of
the declining market that occurred in the spring of 1998 by purchasing issues
which were undervalued.
<PAGE>
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope you find them
informative. Please know that we appreciate greatly your continued confidence
in the Fund and in The Dreyfus Corporation.
Very truly yours,
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-Texas
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, TEXAS SERIES APRIL 30, 1998
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS
PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES CLASS A SHARES
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
$23,090
Dreyfus Premier State
Municipal Bond Fund,
Texas Series
(Class A Shares)
CHART
$22,016
Lehman Brothers
Municipal Bond Index*
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- ---------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
- --------------------------------------------------------- ------------------------------------------------------------
% 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*
- -------------------- ------------------ --------------- -------------------- ----------- ---------------------
<S> <C> <C> <C> <C> <C>
1 Year 10.03% 5.08% 1 Year 9.53% 5.53%
5 Year 7.19 6.21 5 Year 6.63 6.32
10 Year 9.23 8.73 From Inception (1/15/93) 7.26 7.12
</TABLE>
<TABLE>
<CAPTION>
CLASS C Shares
- ------------------------------------------------------------
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
Period Ended 4/30/98 No Redemption Redemption**
- -------------------- ------------- ---------------------
<S> <C> <C>
1 Year 9.24% 8.24%
From Inception (8/15/95) 7.85 7.85
<FN>
- ------------------
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Dreyfus Premier State Municipal Bond Fund, Texas Series on 4/30/88 to a
$10,000 investment made in the Lehman Brothers Municipal Bond Index on that
date. All dividends and capital gain distributions are reinvested.
Performance for Class B and Class C shares will vary from the performance of
Class A shares shown above due to differences in charges and expenses.
The Series invests primarily in Texas municipal securities and its
performance shown in the line graph takes into account the maximum initial
sales charge on Class A 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 Texas 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, TEXAS SERIES
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--100.0% AMOUNT VALUE
- ---------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
TEXAS--97.5%
Amarillo Health Facilities Corp., HR (High Plains Baptist Hospital)
6.562%, 1/3/2022 (Insured; FSA)......................................... $ 4,500,000 $ 4,863,195
Brazos County Housing Finance Corp., SFMR, Refunding
5.75%, 3/1/2017......................................................... 840,000 859,488
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding
6.80%, 12/1/2004........................................................ 700,000 763,616
Clear Creek Independent School District (Permanent School Fund Guaranteed)
4.25%, 2/1/2013......................................................... 1,575,000 1,441,865
Clint Independent School District, Refunding (Permanent School Fund
Guaranteed):
7%, 3/1/2015 (Prerefunded 3/1/1999) (a)................................. 75,000 76,967
7%, 3/1/2015............................................................ 675,000 691,126
Coastal Water Authority, Water Conveyance System Revenue, Refunding
6.25%, 12/15/2017 (Insured; AMBAC)...................................... 5,885,000 6,466,438
Dallas-Fort Worth Regional Airport, Joint Revenue
6.625%, 11/1/2021 (Insured; FGIC)....................................... 1,250,000 1,329,062
Denison Hospital Authority, HR
(Texoma Medical Center Project) 6.125%, 8/15/2017....................... 1,000,000 1,047,770
Dripping Springs Independent School District (Permanent School Fund
Guaranteed)
6%, 8/15/2021 (Prerefunded 8/15/2007) (a)............................... 1,900,000 2,102,920
El Paso:
5%, 8/15/2018 (Insured; FGIC)........................................... 2,130,000 2,066,420
Certificate of Obligation 5%, 8/15/2018 (Insured; FGIC)................. 1,685,000 1,634,703
El Paso Housing Authority, Multi-Family Revenue
(Section 8 Projects) 6.25%, 12/1/2009................................... 2,510,000 2,639,064
Grape Creek-Pulliam Independent School District
Public Facility Corp., School Facility Lease Revenue
7.25%, 5/15/2021........................................................ 2,200,000 2,430,406
Gulf Coast Waste Disposal Authority, SWDR
(Champion International Corp. Project):
7.25%, 4/1/2017 (Prerefunded 4/1/2002) (a)............................ 440,000 491,163
7.25%, 4/1/2017....................................................... 560,000 610,613
Gunter Independent School District, Refunding (Permanent School Fund
Guaranteed)
6.05%, 8/15/2026........................................................ 1,020,000 1,072,091
Hillsboro Independent School District, Refunding (Permanent School Fund
Guaranteed)
5.25%, 8/15/2026........................................................ 1,750,000 1,727,005
Houston:
Airport System Special Facilities Revenue
(Automated People Mover Project) 5.375%, 7/15/2009 (Insured; FSA)..... 2,000,000 2,064,340
Water and Sewer System Revenue, Refunding (Junior Lien)
5.25%, 12/1/2025 (Insured; FGIC)...................................... 2,625,000 2,587,253
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
- ---------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
TEXAS (CONTINUED)
Houston Independent School District (Permanent School Fund Guaranteed)
Zero Coupon, 8/15/2015.................................................. $ 3,000,000 $ 1,193,910
Irving Independent School District (Permanent School Fund Guaranteed):
Zero Coupon, 2/15/2010.................................................. 1,985,000 1,102,449
Refunding, Zero Coupon, 2/15/2016....................................... 1,000,000 386,840
Keller Independent School District,
Unlimited Tax School Building and Refunding (Permanent School Fund
Guaranteed)
5.125%, 8/15/2025....................................................... 3,900,000 3,779,919
Leander 6.75%, 8/15/2016 (Prerefunded 8/15/2015) (a)........................ 2,325,000 2,669,193
Leon County, PCR, Refunding (Nucor Corp. Project) 7.375%, 8/1/2009.......... 750,000 824,550
Misson Consolidated Independent School District
(Permanent School Fund Guaranteed) 5%, 2/15/2016 (b).................... 2,485,000 2,402,374
Montgomery County Health Facilities Development Corp., Hospital Mortgage
Revenue
(Woodlands Medical Center Project) 8.85%, 8/15/2014
(Prerefunded 8/15/1999) (a)............................................. 560,000 603,876
North Texas Higher Education Authority, Inc., Student Loan Revenue
7.25%, 4/1/2003 (Insured; AMBAC)........................................ 1,000,000 1,060,480
Port of Bay City Authority, Matagorda County Revenue
(Hoechst Celanese Corp. Project) 6.50%, 5/1/2026........................ 3,500,000 3,788,435
San Antonio Electric and Gas Revenue, Refunding
5%, 2/1/2017............................................................ 1,800,000 1,738,242
Texas (Veterans Housing Assistance) 6.80%, 12/1/2023........................ 2,870,000 3,080,945
Texas Department Housing and Community Affairs, MFHR
(Harbors and Plumtree) 6.35%, 7/1/2016.................................. 1,300,000 1,361,347
Texas Higher Education Coordinating Board, College Student Loan Revenue
7.30%, 10/1/2003........................................................ 575,000 621,903
Texas National Research Laboratory Commission Financing Corp., LR
(Superconducting Super Collider) 6.95%, 12/1/2012....................... 700,000 823,361
Texas Public Property Finance Corp., Revenue (Mental Health and Retardation)
8.875%, 9/1/2011 (Prerefunded 9/1/2001) (a)............................. 455,000 525,593
Texas Southern University, Revenue 5.75%, 8/1/2018 (Insured; MBIA) (c)...... 3,490,000 3,613,337
Texoma Housing Finance Corp., SFMR, Refunding:
5.75%, 9/1/2017......................................................... 740,000 758,463
5.80%, 9/1/2028......................................................... 2,000,000 2,049,780
Tomball Hospital Authority, Revenue, Refunding 6%, 7/1/2013................. 5,000,000 5,189,500
Tyler Texas Health Facility Development Corp., HR
(East Texas Medical Center Regional Health) 6.625%, 11/1/2011........... 1,680,000 1,789,502
University of Texas (Financing System) University Revenues
4.50%, 8/15/2014........................................................ 1,340,000 1,240,465
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- -------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1998
<TABLE>
<CAPTION>
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
- ---------------------------------------------------------------------------- ----------- -----------
<S> <C> <C>
TEXAS (CONTINUED)
Waller Consolidated Independent School District
(Permanent School Fund Guaranteed) 5.25%, 2/15/2021..................... $ 1,000,000 $ 988,130
West Side Calhoun County Navigation District, SWDR
(Union Carbide Chemical and Plastics) 8.20%, 3/15/2021.................. 500,000 552,905
U.S. RELATED--2.5%
Puerto Rico Highway Transportation Authority, Highway Revenue
5.50%, 7/1/2026......................................................... 2,000,000 2,013,780
-----------
TOTAL INVESTMENTS (cost $76,846,185)........................................ $81,124,784
===========
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FSA Financial Security Assurance Insurance Corporation
HR Hospital Revenue PCR Pollution Control Revenue
LR Lease Revenue SFMR Single Family Mortgage Revenue
SWDR Solid Waste Disposal Revenue
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FITCH (d) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- ------- ----------------- -------------------
AAA Aaa AAA 59.6%
AA Aa AA 7.0
A A A 13.8
BBB Baa BBB 14.9
Not Rated (e) Not Rated (e) Not Rated (e) 4.7
------
100.0%
======
<FN>
NOTES TO STATEMENT OF INVESTMENTS:
- ------------------------------------------------------------------------------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Purchased on a delayed-delivery basis.
(c) Wholly held by custodian as collateral for delayed-delivery security.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) 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.
(f) At April 30, 1998, the Fund had $23,335,911 (29.0%) of net assets
invested in securities whose payment of principal and interest is dependent
upon revenues generated from city general obligations.
See notes to financial statements.
</FN>
</TABLE>
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS 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...... $76,846,185 $81,124,784
Cash......................................................... 438,405
Receivable for shares of Beneficial Interest subscribed...... 75,000
Interest receivable.......................................... 1,287,100
Prepaid expenses............................................. 9,022
-----------
82,934,311
-----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates................ 32,647
Due to Distributor........................................... 25,220
Payable for investment securities purchased.................. 2,387,171
Accrued expenses............................................. 16,490
-----------
2,461,528
-----------
NET ASSETS.............................................................................. $80,472,783
===========
REPRESENTED BY: Paid-in capital.............................................. $75,360,702
Accumulated net realized gain (loss) on investments.......... 833,482
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4................................. 4,278,599
-----------
NET ASSETS.............................................................................. $80,472,783
===========
</TABLE>
NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
----------- ----------- -----------
<S> <C> <C> <C>
Net Assets................................................ $59,758,041 $20,453,533 $ 261,209
Shares Outstanding........................................ 2,755,877 943,455 12,054
NET ASSET VALUE PER SHARE................................. $21.68 $21.68 $21.67
====== ====== ======
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1998
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income.............................. $4,567,210
EXPENSES: Management fee--Note 3(a).................... $ 442,275
Shareholder servicing costs--Note 3(c)....... 227,901
Distribution fees--Note 3(b)................. 95,481
Professional fees............................ 13,903
Custodian fees............................... 8,896
Registration fees............................ 8,823
Prospectus and shareholders' reports......... 8,213
Trustees' fees and expenses--Note 3(d)....... 1,080
Loan commitment fees--Note 2................. 855
Miscellaneous................................ 11,119
-----------
TOTAL EXPENSES........................... 818,546
Less--reduction in management fee due to
undertaking--Note 3(a)................... (145,790)
-----------
NET EXPENSES............................. 672,756
----------
INVESTMENT INCOME--NET........................................................ 3,894,454
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments...... $1,306,332
Net unrealized appreciation (depreciation)
on investments........................... 2,405,268
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS........................ 3,711,600
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................... $7,606,054
==========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 3,894,454 $ 4,320,598
Net realized gain (loss) on investments............................... 1,306,332 1,098,393
Net unrealized appreciation (depreciation) on investments............. 2,405,268 479,971
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. 7,606,054 5,898,962
----------- -----------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares...................................................... (3,051,372) (3,437,549)
Class B shares...................................................... (835,063) (879,151)
Class C shares...................................................... (8,019) (3,898)
Net realized gain on investments:
Class A shares...................................................... (847,695) (760,523)
Class B shares...................................................... (260,030) (216,482)
Class C shares...................................................... (2,729) (1,075)
----------- -----------
TOTAL DIVIDENDS................................................. (5,004,908) (5,298,678)
----------- -----------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 2,175,343 3,978,717
Class B shares...................................................... 3,816,097 911,552
Class C shares...................................................... 126,463 126,161
Dividends reinvested:
Class A shares...................................................... 1,873,726 1,975,780
Class B shares...................................................... 650,003 636,270
Class C shares...................................................... 1,286 65
Cost of shares redeemed:
Class A shares...................................................... (7,168,993) (8,445,756)
Class B shares...................................................... (1,976,539) (1,734,371)
Class C shares...................................................... (41) --
----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS.................................................... (502,655) (2,551,582)
----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS................... 2,098,491 (1,951,298)
NET ASSETS:
Beginning of Period............................................... 78,374,292 80,325,590
----------- -----------
End of Period..................................................... $80,472,783 $78,374,292
=========== ===========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES
---------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
-------------- --------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
CLASS A
-------
Shares sold............................................................ 100,070 191,082
Shares issued for dividends reinvested................................. 86,362 93,562
Shares redeemed........................................................ (329,855) (401,583)
-------- --------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... (143,423) (116,939)
======== ========
CLASS B
-------
Shares sold............................................................ 175,410 43,488
Shares issued for dividends reinvested................................. 29,952 30,139
Shares redeemed........................................................ (90,921) (82,480)
-------- --------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 114,441 (8,853)
======== ========
CLASS C
-------
Shares sold............................................................ 5,845 6,098
Shares issued for dividends reinvested................................. 59 3
Shares redeemed........................................................ (2) --
-------- --------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 5,902 6,101
======== ========
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS 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 APRIL 30,
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA: 1998 1997 1996 1995 1994
------ ------ ------ ------ ------
Net asset value, beginning of period.................. $20.99 $20.84 $20.69 $20.41 $21.23
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net................................ 1.08 1.17 1.20 1.22 1.25
Net realized and unrealized gain (loss) on investments .99 .41 .45 .28 (.66)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... 2.07 1.58 1.65 1.50 .59
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net................. (1.08) (1.17) (1.20) (1.22) (1.25)
Dividends from net realized gain on investments (.30) (.26) (.30) -- (.13)
Dividends in excess of net realized gain on investments -- -- -- -- (.03)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................................... (1.38) (1.43) (1.50) (1.22) (1.41)
------ ------ ------ ------ ------
Net asset value, end of period........................ $21.68 $20.99 $20.84 $20.69 $20.41
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN*.................................. 10.03% 7.74% 8.06% 7.63% 2.62%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... .72% .37% .37% .37% .39%
Ratio of net investment income to average net assets.. 4.96% 5.54% 5.64% 6.01% 5.78%
Decrease reflected in above expense ratios due to
undertakings by the Manager......................... .18% .55% .55% .55% .55%
Portfolio Turnover Rate............................... 27.18% 61.22% 49.24% 38.68% 9.68%
Net Assets, end of period (000's Omitted)............. $59,758 $60,849 $62,864 $68,103 $76,277
<FN>
- --------------------------
* Exclusive of sales load.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS 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 APRIL 30,
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA: 1998 1997 1996 1995 1994
------ ------ ------ ------ ------
Net asset value, beginning of period.................. $20.98 $20.84 $20.69 $20.41 $21.23
------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net................................ .97 1.06 1.09 1.10 1.13
Net realized and unrealized gain (loss) on investments 1.00 .40 .45 .28 (.66)
------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... 1.97 1.46 1.54 1.38 .47
------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net................. (.97) (1.06) (1.09) (1.10) (1.13)
Dividends from net realized gain on investments....... (.30) (.26) (.30) -- (.13)
Dividends in excess of net realized gain on investments -- -- -- -- (.03)
------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................................... (1.27) (1.32) (1.39) (1.10) (1.29)
------ ------ ------ ------ ------
Net asset value, end of period........................ $21.68 $20.98 $20.84 $20.69 $20.41
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN*.................................. 9.53% 7.15% 7.51% 7.05% 2.05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............... 1.23% .88% .88% .89% .94%
Ratio of net investment income to average net assets.. 4.44% 5.03% 5.13% 5.46% 5.15%
Decrease reflected in above expense ratios due to
undertakings by the Manager........................ .18% .55% .55% .55% .54%
Portfolio Turnover Rate.............................. 27.18% 61.22% 49.24% 38.68% 9.68%
Net Assets, end of period (000's Omitted)............ $20,454 $17,396 $17,461 $16,818 $15,878
<FN>
- --------------------------
* Exclusive of sales load.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS 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 APRIL 30,
---------------------------------
<S> <C> <C> <C>
PER SHARE DATA: 1998 1997 1996(1)
------ ------ --------
Net asset value, beginning of period.................... $20.97 $20.83 $20.78
------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net.................................. .91 .99 .73
Net realized and unrealized gain (loss) on investments.. 1.00 .40 .35
------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS........................ 1.91 1.39 1.08
------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net................... (.91) (.99) (.73)
Dividends from net realized gain on investments......... (.30) (.26) (.30)
------ ------ ------
TOTAL DISTRIBUTIONS..................................... (1.21) (1.25) (1.03)
------ ------ ------
Net asset value, end of period.......................... $21.67 $20.97 $20.83
====== ====== ======
TOTAL INVESTMENT RETURN(2).................................. 9.24% 6.79% 7.29%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................. 1.52% 1.19% 1.18%(3)
Ratio of net investment income to average net assets.... 4.10% 4.57% 4.77%(3)
Decrease reflected in above expense ratios due to
undertakings by the Manager............................. .15% .54% .58%(3)
Portfolio Turnover Rate................................. 27.18% 61.22% 49.24%
Net Assets, end of period (000's Omitted)............... $261 $129 $1
<FN>
- ------------------------
(1) From August 15, 1995 (commencement of intital offering) to April 30,
1996.
(2) Exclusive of sales load.
(3) Annualized.
</FN>
</TABLE>
See notes to financial statements.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS 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 Texas 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 Mellon Bank, 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.
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 PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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, 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 had undertaken
from May 1, 1997 through June 30, 1997 to waive receipt of the management fee
payable to it by the Fund, and thereafter, had undertaken through August 31,
1997 to reduce the management fee paid by the Fund, to the extent that the
Fund's aggregate expenses, excluding 12b-1 distribution fees, taxes,
brokerage, commitment fees, interest on borrowings and extraordinary
expenses, exceeded specified annual percentages of the value of the Fund's
average daily net assets. The Manager has currently undertaken from September
1, 1997 through July 31, 1998 to reduce the management fee paid by the Fund,
to the extent that the Fund's aggregate expenses, (excluding certain expenses
as described above) exceed an annual rate of .85 of 1% of the value of the
Fund's average daily net assets. The reduction in management fee, pursuant to
the undertakings, amounted to $145,790 during the period ended April 30,
1998.
(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 $94,015 and $1,466, 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 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 $153,538, $47,007 and $489,
respectively, pursuant to the Shareholder Services Plan.
<PAGE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
- ------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 $26,090 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 April 30, 1998 amounted
to $24,382,189 and $21,281,926, respectively.
At April 30, 1998, accumulated net unrealized appreciation on investments
was $4,278,599, consisting of $4,378,731 gross unrealized appreciation and
$100,132 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, TEXAS SERIES
- ------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Premier State Municipal
Bond Fund, Texas 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
for each of the two years in the period then ended, and financial highlights
for each of the years 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 the 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, Texas Series at April
30, 1998, the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
New York, New York
June 3, 1998
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS 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 income tax
and, for individuals who are Texas residents, not subject to taxation
by Texas), and
-- the Fund hereby designates $.1998 per share as a long-term capital
gain distribution (of which 29.08% is subject to the 20% maximum
Federal tax rate) of the $.3009 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, TEXAS 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. 061/621AR984
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
EXHIBIT A:
DREYFUS
PREMIER STATE
MUNICIPAL
PERIOD LEHMAN BROTHERS BOND FUND,
MUNICIPAL TEXAS SERIES
BOND INDEX * (CLASS A SHARES)
4/30/88 10,000 9,552
4/30/89 10,893 10,773
4/30/90 11,678 11,586
4/30/91 13,019 12,922
4/30/92 14,257 14,339
4/30/93 16,061 16,317
4/30/94 16,407 16,745
4/30/95 17,499 18,023
4/30/96 18,889 19,476
4/30/97 20,142 20,984
4/30/98 22,016 23,090
*Source: Lehman Brothers
