DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier State
Municipal Bond Fund-Georgia Series for the six-month period ended
October 31, 1997 as shown in the following table:
<TABLE>
<CAPTION>
Annualized
Total Return* Distribution Rate**
___________ ________________
<S> <C> <C>
Class A Shares......................... 5.74% 4.21%
Class B Shares......................... 5.56% 3.92%
Class C Shares......................... 5.12% 3.38%
</TABLE>
Economic Review
With the level of inflation as low as it has been seen since 1964 and
unemployment still near a 23-year low, the economy continued its solid growth
over the reporting period. Gross Domestic Product (the "GDP")-the dollar
total of all goods and services produced in the United States-has grown in
excess of 3% for each of the past four quarters, a level and consistency of
gain unmatched since 1984. This extraordinary economic performance has been
fueled by huge business investment in new plant and equipment as well as a
renewed surge in consumer spending over the summer. Consumers play a
substantial role in determining the course of the economy since their
spending accounts for two thirds of all economic activity. Retail sales rose
through the summer and into September, although there was some sign of
deceleration as the third quarter progressed.
The big economic story continued to be the lack of inflation in an
economy now in its seventh year of expansion. This remarkable price
stability, at a time in the business cycle when inflationary pressures would
usually be apparent, has enabled the Federal Reserve Board (the "Fed") to
refrain from tightening monetary policy. The Federal Open Market Committee
(the "FOMC"), the policy-making arm of the Fed, has raised interest rates
just once in over two years, a period roughly coinciding with the surge of
growth in the economy. The last increase in short-term interest rates came on
March 25, 1997 when the FOMC increased the Federal Funds rate by a modest one
quarter of a percentage point to 5.50%. (The Federal Funds rate is the rate
of interest that banks charge one another for overnight loans.)
Of course, the recent financial market turbulence arising from currency
devaluations in some of the economically weaker Southeast Asian countries has
added a cautionary note to any Fed monetary actions that might further roil
investment markets. The Southeast Asian economies have been cooling or in
outright recession for some time and represent a large share of the global
economy and the U.S. import/export market. The recent crisis has boosted the
value of the U.S. dollar and could further dampen the demand for U.S. exports
to this region. This bodes well for continued low inflation in the U.S. and
weakens the argument that we are on the brink of price acceleration.
In fact, inflation remains in check. The Implicit Price Deflator, an
indicator of inflation that measures the prices of all goods and services in
the U.S., has risen at an annual rate of less than 2% for the past two
quarters. This favorable trend in prices has been mirrored by both the
Consumer Price Index (a measure of the average change in the prices paid by
urban consumers for a fixed market basket of goods and services) and the
Producer Price Index (a measure of the average change in the prices of all
commodities, at all stages of processing, produced for sale in primary
markets in the U.S.). The Labor Department's Employment Cost Index, a broad
measure of changes in wages and benefits, has indicated relatively modest
increases in labor costs. Still, the labor market remains tight, with the
unemployment rate at a level unmatched in 23 years.
Whether the economy will slow without further monetary restraint by the
Fed remains an open question. Industrial production has been strong and
operating rates, an indicator of possible future price pressures, have edged
to their highest level in two years. Of paramount concern to Fed Chairman
Alan Greenspan is the possibility of continuing economic growth so strong
that the unemployment rate is driven even lower, and a subsequent
corresponding upsurge in wage rates
reignites inflation. The performance of the economy over the coming months
appears crucial in determining whether the Fed will actively restrain the
economy. We remain alert to changes in economic trends that would increase
the risk of rising inflation and, consequently, the prospect of higher
interest rates.
Market Environment
Renewed concerns regarding Asia and Latin America have resulted in an
international flight to quality and projections of the U.S. economy slowing
down due to diminished exports. In U.S. fixed income securities, these
consequences have raised prices, an appreciation from already high price
levels, and further lowered yield levels. The timing comes on the heels of
many strong recent economic indicators, especially on employment and housing,
that show signs of potential inflation that could push market prices lower.
These strong opposing forces have generated a potential dilemma for bond
market participants. With only potential evidence of weakness in the economy,
the 30-year Treasury bond's yield has been pushed to the 6.05% level.
Participants must now decide if they should position themselves for a run
below 6%. More importantly, the question arises whether a new level of
interest rates is sustainable from global currency devaluation and foreign
economic weakness alone. Anticipated information on U.S. wage pressures and
retail sales should provide needed conviction to many participants'
sentiments.
The Portfolio
While global forces have recently gripped the fundamental market
direction, new issuance has also reemerged as the dominant technical market
force in the municipal arena. Lower yield levels have encouraged many
municipal authorities to issue new debt or refinance older, higher cost debt.
Despite the increase in supply, most issues are absorbed with relative ease.
In the Fund, many existing holdings have become premium bonds (evaluated
above par) due to appreciation. Our investment approach has concentrated on
longer intermediate (15-18 years) paper or other bonds that are expected to
perform in a similar manner. We continue to focus on shortening maturities
and lengthening call features to influence bond selection. Additionally, we
have added some income oriented securities. If rates stabilize in the current
ranges, we feel higher income paper should perform well and be defensive
against discount alternatives.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 18, 1997
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.
**Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the maximum
offering price 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.
Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
<TABLE>
<CAPTION>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
____________ ____________
<S> <C> <C>
Albany, Sewer System Revenue
6.50%, 7/1/2009 (Insured; MBIA) (Prerefunded 7/1/2002 ) (a)............... $ 100,000 $ 111,093
Atlanta, Airport Facilities Revenue:
5.25%, 1/1/2010 (Insured; AMBAC).......................................... 1,000,000 1,027,160
6%, 1/1/2014 (Insured; AMBAC)............................................. 1,000,000 1,051,920
Atlanta, GO 6.10%, 12/1/2019................................................ 1,000,000 1,081,480
Atlanta, Water and Sewer Revenue, Refunding 5.25% 1/1/2027 (Insured; FGIC).. 1,000,000 986,690
Barrow County School District 5.60%, 2/1/2015 (Insured; MBIA)............... 1,000,000 1,034,440
Clayton County and Clayton County Water Authority, Water and Sewer Revenue,
Refunding
5.60%, 5/1/2013 (Insured; AMBAC).......................................... 1,200,000 1,252,080
Colquitt County Hospital Authority, Refunding 5.50%, 3/1/2016 (Insured; FSA) 1,000,000 1,012,500
Columbia, Water and Sewer Revenue, Refunding 5.40%, 6/1/2011 (Insured; AMBAC) 750,000 775,170
Columbus Hospital Authority, Revenue (St. Francis Hospital)
6.20%, 1/1/2010 (Insured; MBIA)........................................... 200,000 212,840
Dekalb County Development Authority, Revenue
(Wesley Homes, Inc-Budd Terrace Project)
6.75%, 10/1/2013 (LOC; Wachovia Bank of Georgia, N.A.) (b)................ 200,000 212,088
Fayette County School District 6.125%, 3/1/2015............................. 500,000 537,205
Fulton County, Water and Sewer Revenue, Refunding 6.375%, 1/1/2014 (Insured; FGIC) 290,000 331,569
Fulton County Building Authority, Revenue, Refunding (County Government and
Health
Facilities Project) 6.125%, 1/1/2011...................................... 300,000 321,459
Fulton County Development Authority, Special Facilities Revenue, Refunding
(Delta Air Lines Inc. Project) 6.95%, 11/1/2012........................... 245,000 268,593
Gainesville, Water and Sewer Revenue, Refunding 6%, 11/15/2012 (Insured; FGIC) 300,000 332,283
Georgia, GO:
6.65%, 3/1/2009........................................................... 1,000,000 1,170,710
5.65%, 3/1/2012........................................................... 1,000,000 1,072,770
Georgia Housing and Finance Authority, SFMR :
7%, 12/1/2015 (Insured; FSA).............................................. 1,500,000 1,601,595
6.50%, 12/1/2017 (Insured; FSA)........................................... 1,000,000 1,055,730
Georgia Municipal Gas Authority, Gas Revenue (Warner Robins Project)
5.80%, 1/1/2015 (Insured; MBIA)........................................... 1,000,000 1,050,060
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health)
5.25%, 8/1/2013 (Insured; MBIA)........................................... 2,000,000 2,022,780
Hancock County, GO 6.70%, 4/1/2015.......................................... 1,000,000 1,111,520
Henry County and Henry County Water and Sewer Authority, Revenue
5%, 2/1/2026 (Insured; AMBAC)............................................. 1,000,000 959,050
Marietta Development Authority, Revenue, Refunding (First Mortgage-Life
College)
5.75%, 9/1/2014 (Insured; FSA)............................................ 850,000 887,366
Meriwether County School District 5.50%, 2/1/2016 (Insured; FSA)............ 1,000,000 1,022,660
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1997 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
____________ ____________
Metropolitan Atlanta Rapid Transportation Authority, Sales Tax Revenue, Refunding
6.25%, 7/1/2020 (Insured; AMBAC).......................................... $ 300,000 $ 341,106
Private Colleges and Universities Authority, Revenue, Refunding
(Spellman College Project) 6.20%, 6/1/2014 (Insured; FGIC)................ 1,000,000 1,086,300
____________
TOTAL INVESTMENTS (cost $22,459,592)........................................ $23,930,217
============
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations (Unaudited)
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
GO General Obligation Insurance Corporation
FSA Financial Security Assurance SFMR Single Family Housing Revenue
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ ___________________
<S> <C> <C> <C>
AAA Aaa AAA 74.1%
AA Aa AA 24.8
BBB Baa BBB 1.1
________
100.0%
========
</TABLE>
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) Secured by letters of credit.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1997 (UNAUDITED)
Cost Value
____________ ____________
<S> <C> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $22,459,592 $23,930,217
Cash....................................... 483,136
Interest receivable........................ 402,162
Prepaid expenses........................... 2,316
____________
24,817,831
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 11,549
Due to Distributor......................... 12,829
Payable for shares of Beneficial Interest redeemed 58,799
Accrued expenses........................... 13,655
____________
96,832
____________
NET ASSETS.................................................................. $24,720,999
============
REPRESENTED BY: Paid-in capital............................ $23,914,832
Accumulated net realized gain (loss) on investments (664,458)
Accumulated gross unrealized appreciation on investments 1,470,625
____________
NET ASSETS.................................................................. $24,720,999
============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B Class C
____________ ____________ ____________
<S> <C> <C> <C>
Net Assets.................................................. $6,928,483 $17,750,962 $41,554
Shares Outstanding.......................................... 506,805 1,297,859 3,041
NET ASSET VALUE PER SHARE................................... $13.67 $13.68 $13.66
======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income............................ $ 684,198
EXPENSES: Management fee-Note 3(a)................... $ 69,675
Distribution fees-Note 3(b)................ 45,550
Shareholder servicing costs-Note 3(c)...... 34,491
Professional fees.......................... 5,209
Prospectus and shareholders' reports....... 2,834
Registration fees.......................... 1,586
Custodian fees............................. 1,249
Trustees' fees and expenses-Note 3(d)...... 174
Loan commitment fees-Note 2................ 110
Miscellaneous.............................. 3,931
___________
Total Expenses....................... 164,809
___________
INVESTMENT INCOME-NET....................................................... 519,389
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS................... 844,015
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,363,404
===========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
________________ ______________
OPERATIONS:
Investment income-net................................................... $ 519,389 $ 1,165,649
Net realized gain (loss) on investments................................. ---- 69,477
Net unrealized appreciation (depreciation) on investments............... 844,015 293,070
____________ ____________
Net Increase (Decrease) in Net Assets Resulting from Operations..... 1,363,404 1,528,196
____________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares........................................................ (158,897) (356,396)
Class B shares........................................................ (359,636) (805,477)
Class C shares........................................................ (856) (3,776)
____________ ____________
Total Dividends..................................................... (519,389) (1,165,649)
____________ ____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 824,895 212,279
Class B shares........................................................ 413,569 709,076
Class C shares........................................................ 176 12,238
Dividends reinvested:
Class A shares........................................................ 110,999 260,106
Class B shares........................................................ 177,876 396,438
Class C shares........................................................ 500 3,525
Cost of shares redeemed:
Class A shares........................................................ (842,641) (2,334,070)
Class B shares........................................................ (1,656,258) (3,248,467)
Class C shares........................................................ (65,701) ----
____________ ____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (1,036,585) (3,988,875)
____________ ____________
Total Increase (Decrease) in Net Assets........................... (192,570) (3,626,328)
NET ASSETS:
Beginning of Period..................................................... 24,913,569 28,539,897
____________ ____________
End of Period........................................................... $24,720,999 $24,913,569
============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
_________________________________
Six Months Ended
October 31, 1997 Year Ended
(Unaudited) April 30, 1997
________________ ______________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold.......................................................... 61,638 16,032
Shares issued for dividends reinvested............................... 8,178 19,634
Shares redeemed...................................................... (62,166) (175,973)
________ ________
Net Increase (Decrease) in Shares Outstanding 7,650 (140,307)
======== ========
Class B
_______
Shares sold.......................................................... 30,461 53,684
Shares issued for dividends reinvested............................... 13,100 29,914
Shares redeemed...................................................... (122,849) (246,421)
________ ________
Net Increase (Decrease) in Shares Outstanding (79,288) (162,823)
======== ========
Class C
_______
Shares sold.......................................................... 13 927
Shares issued for dividends reinvested............................... 37 266
Shares redeemed...................................................... (4,925) -
________ ________
Net Increase (Decrease) in Shares Outstanding (4,875) 1,193
======== ========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA 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.
Class A Shares
_________________________________________________________________________
Six Months Ended
October 31, 1997 Year Ended April 30,
______________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993(1)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.22 $13.05 $12.80 $12.69 $13.27 $12.50
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income-net................. .30 .62 .66 .73 .73 .51
Net realized and unrealized gain (loss)
on investments...................... .45 .17 .25 .11 (.58) .77
______ ______ ______ ______ ______ ______
Total from Investment Operations...... .75 .79 .91 .84 .15 1.28
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.30) (.62) (.66) (.73) (.73) (.51)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $13.67 $13.22 $13.05 $12.80 $12.69 $13.27
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(2)................ 11.39%(3) 6.16% 7.14% 6.87% .97% 15.91%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .94%(3) .98% .74% .25% .07% -
Ratio of net investment income
to average net assets............... 4.45%(3) 4.71% 5.00% 5.80% 5.41% 5.55%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - .21% .78% 1.02% 1.46%(3)
Portfolio Turnover Rate............... - 50.96% 33.09% 34.04% 6.76% 37.79%(4)
Net Assets, end of period (000's Omitted) $6,928 $6,598 $8,346 $8,985 $10,058 $7,304
_______________________________
(1) From September 3, 1992 (commencement of operations) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA 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.
Class B Shares
_________________________________________________________________________
Six Months Ended
October 31, 1997 Year Ended April 30,
______________________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993(1)
__________ ______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $13.22 $13.06 $12.80 $12.69 $13.27 $12.71
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income-net................. .27 .56 .59 .66 .67 .20
Net realized and unrealized gain (loss)
on investments...................... .46 .16 .26 .11 (.58) .56
______ ______ ______ ______ ______ ______
Total from Investment Operations...... .73 .72 .85 .77 .09 .76
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.27) (.56) (.59) (.66) (.67) (.20)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $13.68 $13.22 $13.06 $12.80 $12.69 $13.27
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(2)................ 11.03%(3) 5.55% 6.69% 6.33% .46% 20.66%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.44%(3) 1.47% 1.24% .75% .58% .50%(3)
Ratio of net investment income
to average net assets............... 3.96%(3) 4.20% 4.46% 5.27% 4.85% 4.60%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - .20% .80% 1.02% 1.37%(3)
Portfolio Turnover Rate............... - 50.96% 33.09% 34.04% 6.76% 37.79%(4)
Net Assets, end of period (000's Omitted) $17,751 $18,211 $20,106 $19,429 $16,243 $6,319
_______________________________
(1) From January 15, 1993 (commencement of operations) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA 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.
Class C Shares
____________________________________________
Six Months Ended
October 31, 1997 Year Ended April 30,
_____________________
PER SHARE DATA: (Unaudited) 1997 1996(1)
__________ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period....................... $13.22 $13.05 $12.85
______ ______ ______
Investment Operations:
Investment income-net...................................... .23 .51 .38
Net realized and unrealized gain (loss)
on investments........................................... .44 .17 .20
______ ______ ______
Total from Investment Operations........................... .67 .68 .58
______ ______ ______
Distributions:
Dividends from investment income-net....................... (.23) (.51) (.38)
______ ______ ______
Net asset value, end of period............................. $13.66 $13.22 $13.05
====== ====== ======
TOTAL INVESTMENT RETURN(2)..................................... 10.16%(3) 5.30% 6.28%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... 1.89%(3) 1.80% 1.98%(3)
Ratio of net investment income
to average net assets.................................... 3.53%(3) 3.87% 3.73%(3)
Portfolio Turnover Rate.................................... - 50.96% 33.09%
Net Assets, end of period (000's Omitted).................. $42 $105 $88
______________________________
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 Georgia 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.
(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
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
the Fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code. To the extent that
net realized capital gain can be offset by capital loss carryovers, it is the
policy of the Fund not to distribute such gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $665,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1997. If not
applied, $15,000 of the carryover expires in fiscal 2002, $367,000 expires in
fiscal 2003, $267,000 expires in fiscal 2004 and $16,000 expires in fiscal
2005.
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. For the period ended
October 31, 1997, 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.
(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 October 31, 1997,
the Fund was charged $45,368 and $182 for Class B and Class C shares,
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 October 31,
1997, the Fund was charged $8,926, $22,684 and $61 for Class A, Class B and
Class C shares, 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 October 31, 1997, the Fund was charged $5,594 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.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases of investment securities, excluding
short-term securities, during the period ended October 31, 1997 amounted to
$1,910,070.
At October 31, 1997, 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).
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, GEORGIA 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. 068/627SA9710
Semi-Annual Report
Dreyfus Premier State
Municipal Bond Fund
Georgia Series
October 31, 1997
Registration Mark
[Dreyfus lion 2/hres logo]
