DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus Premier State Municipal
Bond Fund -- Ohio Series for the six-month reporting period ended October 31,
1998, as shown in the following table:
<TABLE>
ANNUALIZED
TOTAL RETURN* DISTRIBUTION RATE**
___________ ________________
<S> <C> <C>
Class A shares . . . . . . . . . . . . . . . . . . . . 4.16% 4.79%
Class B shares . . . . . . . . . . . . . . . . . . . . 3.88% 4.50%
Class C shares . . . . . . . . . . . . . . . . . . . . 3.78% 4.29%
</TABLE>
THE ECONOMY
In the face of soaring consumer confidence and strong first-quarter economic
growth, the Federal Reserve Board (the "Fed") earlier this year refrained from
increasing interest rates, partially to avoid further roiling international
financial markets. In addition, the Fed evidently felt then that the economic
slowdown overseas might curtail the U.S. economy to some degree, which would
alleviate the need for monetary restraint. The Fed's expectations have proven to
be true, and its judgment accurate. The U.S. balance of trade has worsened and
there have been increasing signs of a slowdown in export-related industries. On
September 29, concerns about a weakening U.S. economy caused the Federal Open
Market Committee (the F.O.M.C., the policy-making arm of the Fed) to pare the
Federal Funds target rate by 25 basis points, the first reduction since January
1996. (The Federal Funds rate is the rate of interest that banks charge each
other for overnight loans.) At that point, Fed Chairman Alan Greenspan described
the economic outlook for the United States as having "weakened measurably." Two
weeks later, on October 15, the F.O.M.C. again reduced its target rate by an
additional 25 basis points, putting the Federal Funds rate at 5.0%.
Despite the concerns of the Fed regarding an economic slowdown, aggregate
economic statistics showed a growing and resilient economy during the reporting
period. Low unemployment and negligible inflation, combined with car makers
rebuilding inventory after a long strike and rising consumer incomes, resulted
in solid economic growth (3.3% ) for the third quarter of this year. While a
significant portion of this gain was due to inventory replenishment after the
automobile strike, the overall results were still an improvement over
second-quarter economic growth of 1.8%. Inflation as measured by the Consumer
Price Index remained at levels not witnessed since 1963.
The Fed' s responsibility is to enact monetary policy that anticipates future
economic conditions. The U.S. trade deficit has continued to widen because of
the global economic slide. Slumping exports have weakened manufacturing activity
since midyear and there is concern that this slackness could become more
pronounced and widen into other sectors of the economy. While the increase in
imports also restrains domestic production, it has helped contain inflation as
well, since domestic producers are reluctant to raise prices. This provides
additional flexibility for the Fed to lower interest rates still further. So
far, economic problems overseas have not caused any measurable reaction in the
U.S. labor market. Only the growth rate in new jobs has eased from its torrid
pace earlier in the year. The unemployment rate has remained near 30-year lows
and worker inflation-adjusted take-home pay has been rising. The condition of
the labor market is a key determinant of consumer confidence which, of course,
relates directly to consumer spending, a force that accounts for two thirds of
all economic activity. Business spending has shown signs of weakness, so the
role of the consumer will be of even greater importance in the future. It is
significant that measures of consumer confidence have receded from earlier
record high levels, largely because of concerns about the volatility of
financial markets.
MARKET ENVIRONMENT
The environment for fixed income securities during the past six months has
been extremely positive, continuing a trend toward lower long-term interest
rates that began in the spring of 1997. As has been the case for much of this
decline in rates, economic fundamentals have not been a primary influence on the
bond market. They have been pushed aside by other factors which created a flight
to quality into U.S. Government securities as a safe haven while many other
markets were in temporary disarray. The primary engine for lower rates has been
the economic crisis which began in Asia and has since spread to Russia and Latin
America, and now appears to be affecting the U.S. economy. The threat of an
economic slowdown in the U.S., coupled with a potential global credit crunch,
forced the Fed to lower the Federal Funds target rate 25 basis points twice in a
two week span (September 29 and October 15) in order to buy some insurance
against a possible U.S. recession in 1999. It is likely that the Fed will
maintain an accommodative stance toward interest rates in the near future as the
current global economic slump shows no sign of ending.
Municipal securities benefited from the general decline in interest rates
during the period, although to a lesser degree than U.S. Treasuries. The fact
that municipals do not command safe haven status, combined with a general
decrease in demand as long tax-free bonds yield less than 5%, were the primary
reasons for the underperformance versus U.S. Treasuries. Also, many
corporate-backed municipals performed poorly due to reduced earnings prospects
in a slower economy. This underperformance can easily be seen as the
municipal/Treasury yield ratio (as measured by the Bond Buyer Revenue Bond
Index/30- year Treasury yield) increased from 93% to 101%. The combination of
attractive yields relative to Treasuries, a slowing economy, and a bias toward
lower short-term interest rates bodes well for municipal securities going
forward.
PORTFOLIO OVERVIEW
The primary objective in managing the Series continues to be the realization
of income exempt from both Federal and Ohio income taxes. In pursuing this goal,
the Series maintains a nucleus of high-coupon, income-generating securities
which produce an attractive level of tax-free income while providing stability
during flat to declining markets. However, as the trend toward lower interest
rates has become more pronounced, strategy has also focused on lengthening the
duration of the Series to capture more price appreciation should interest rates
continue to decline as we anticipate.
We view credit spreads as too narrow to justify adding lower quality
securities in a slowing economic environment. At present, approximately 39% of
the Series is invested in securities which are rated "AAA" and 68% is invested
in those rated "A" or better, unchanged from the start of the period
While it is difficult at best to predict the future of interest rates, we feel
the Series is well balanced at present. We will continue to follow our long-term
objectives and monitor the volatile investment climate in order to position the
Series appropriately.
Sincerely,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 16, 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 applicable deferred sales charge imposed on
redemptions in the case of Class B and Class C shares. Income may be subject to
state and local income taxes for non-Ohio residents.
**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 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 and Class C shares. Some
income may be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
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STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--97.3% Amount Value
- ------------------------------------------------------- _____________ ______________
<S> <C> <C>
OHIO--94.5%
Akron:
6%, 12/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,380,000 $ 1,591,816
Sewer Systems Revenue 5.875%, 12/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . . 1,200,000 1,312,728
Akron-Wilbeth Housing Development Corp., First Mortgage Revenue
7.90%, 8/1/2003 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,805,000 2,092,916
Allen County, Industrial First Mortgage Revenue, Refunding
6.75%, 11/15/2008 (Guaranteed; K-Mart Corp.) . . . . . . . . . . . . . . . . . . . . . 1,280,000 1,377,779
City of Barberton, Hospital Facilities Revenue
(The Barberton Citizens Hospital Co. Project) 7.25%, 1/1/2012
(Prerefunded 1/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400,000 2,690,160
Board of Education of the Cleveland City School District 8%, 12/1/2001 . . . . . . . . . . 1,390,000 1,487,689
Butler County, Hospital Facilities Revenue, Refunding and Improvement
(Fort Hamilton Hughes Group) 7.25%, 1/1/2001 . . . . . . . . . . . . . . . . . . . . . 2,560,000 2,634,214
City of Cambridge, HR, Refunding (Guernsey Memorial Hospital Project)
8%, 12/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,214,160
Clermont County, Hospital Facilities Revenue, Refunding (Mercy Health Systems):
5.625%, 9/1/2016 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250,000 4,545,120
7.50%, 9/1/2019 (Prerefunded 9/1/2001) (Insured; AMBAC) (a) . . . . . . . . . . . . . . 180,000 198,693
City of Cleveland:
Airport Special Revenue (Continental Airlines Inc. Project) 5.375%, 9/15/2027 . . . . . 5,000,000 4,796,050
COP (Motor Vehicle, Motorized and Communication Equipment) 7.10%, 7/1/2002 . . . . . . 1,765,000 1,853,321
Parking Facility Improvement Revenue 8%, 9/15/2012 (Prerefunded 9/15/2002) (a) . . . . 5,000,000 5,840,300
Waterworks Revenue, Refunding 5.50%, 1/1/2021 (Insured; MBIA) . . . . . . . . . . . . . 8,000,000 8,683,840
Cleveland-Cuyahoga County Port Authority, Revenue, Refunding:
(Port of Cleveland) 5.375%, 5/15/2018 . . . . . . . . . . . . . . . . . . . . . . . . . 2,860,000 2,800,684
(Rock & Roll Hall of Fame) 5.40%, 12/1/2015 (Insured; AMBAC) . . . . . . . . . . . . . 2,540,000 2,671,191
Cuyahoga County:
HR:
(Meridia Health Systems)
7%, 8/15/2023 (Prerefunded 8/15/2001) (a) . . . . . . . . . . . . . . . . . . . 1,750,000 1,939,227
Refunding, Improvement (University Hospitals Health)
5.625%, 1/15/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . 3,695,000 3,937,872
Jail Facilities 7%, 10/1/2013 (Prerefunded 10/1/2001) (a) . . . . . . . . . . . . . . . 6,125,000 6,799,240
MFHR (National Terminal Apartments Project) 6.40%, 7/1/2016 (Collateralized; FNMA) . . 2,000,000 2,178,340
Dublin, Refunding and Improvement 4.625%, 12/1/2018. . . . . . . . . . . . . . . . . . . . 1,635,000 1,578,887
Eaton, IDR, Refunding (Baxter International Inc. Project) 6.50%, 12/1/2012 . . . . . . . . 1,500,000 1,626,390
Euclid City School District, Improvement 7.10%, 12/1/2011 (Prerefunded 12/1/2001) (a). . . 1,000,000 1,118,740
Village of Evendale, IDR, Refunding (Ashland Oil Inc. Project) 6.90%, 11/1/2010. . . . . . 2,000,000 2,151,900
Fairfield City School District, School Improvement Unlimited Tax:
7.20%, 12/1/2011 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,209,000
7.20%, 12/1/2012 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,511,250
6.10%, 12/1/2015 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,197,960
6%, 12/1/2020 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,188,460
Fairlawn, Health Care Facilities Revenue (Village at Saint Edward Project)
8.75%, 10/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,420,000 2,530,183
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
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STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ ______________
OHIO (CONTINUED)
Findlay 5.875%, 7/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 $ 2,177,040
Franklin, Water System Revenue 5.75%, 12/1/2016 (Insured; MBIA). . . . . . . . . . . . . . 1,000,000 1,096,940
Franklin County:
Health Care Facilities Revenue, Refunding and Improvement
(Friendship Village of Columbus) 5.375%, 8/15/2028 (Insured; ACA) . . . . . . . . . 5,000,000 4,999,550
HR:
Holy Cross Health Systems Corp.:
(Mount Carmel Health) 6.75%, 6/1/2019 (Insured; MBIA)
(Prerefunded 6/1/2002) (a) . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,799,875
Refunding and Improvement 5.80%, 6/1/2016 . . . . . . . . . . . . . . . . . . . 2,000,000 2,140,240
Refunding and Improvement:
(The Children's Hospital Project) 6.60%, 5/1/2013
(Worthington Christian Village Congregate Care Project): . . . . . . . . . . . . 4,000,000 4,451,800
10.25%, 8/1/2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705,000 769,641
7.80%, 2/1/2017 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . 5,690,000 6,138,429
Gallia County Local School District 7.375%, 12/1/2004. . . . . . . . . . . . . . . . . . . 570,000 672,475
Greater Cleveland Gateway Economic Development Corp.:
Senior Lien Excise Tax Revenue 6.875%, 9/1/2005 (Insured; FSA) . . . . . . . . . . . . 1,500,000 1,637,850
Stadium Revenue 7.50%, 9/1/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,675,000 6,239,889
Greater Cleveland Regional Transit Authority 5.65%, 12/1/2016 (Insured; FGIC). . . . . . . 5,445,000 5,849,237
Greene County, Sewer System Revenue, Refunding 5.25%, 12/1/2025 (Insured; MBIA). . . . . . 2,000,000 2,042,120
Hamilton County:
Hospital Facilities Improvement Revenue, Refunding (Deaconess Hospital)
7%, 1/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,570,000 2,824,404
Mortgage Revenue (Judson Care Center)
7.80%, 8/1/2019 (Prerefunded 8/1/2000) (Insured; FHA, LOC; Citibank) (a) . . . . . 3,970,000 4,306,418
Hilliard School District, School Improvement:
Zero Coupon, 12/1/2013 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 1,655,000 811,529
Zero Coupon, 12/1/2014 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . 1,655,000 764,428
5.75%, 12/1/2019 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,709,400
Jefferson County, Refunding (County Jail Construction) 5.75%, 12/1/2019 (Insured; FSA) . . 6,655,000 7,435,365
Kent State University, University Revenue 5.50%, 5/1/2017 (Insured; MBIA). . . . . . . . . 1,000,000 1,058,760
Kirtland Local School District 7.50%, 12/1/2009. . . . . . . . . . . . . . . . . . . . . . 760,000 806,162
Knox County, IDR (Weyerhaeuser Co. Project) 9%, 10/1/2007. . . . . . . . . . . . . . . . . 1,000,000 1,318,030
Lakota Local School District 6.125%, 12/1/2017 (Insured; AMBAC)
(Prerefunded 12/1/2005) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,075,000 1,219,308
Lorain County, HR, Refunding (Catholic Healthcare Partners):
5.625%, 9/1/2016 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,625,000 2,818,751
5.625%, 9/1/2017 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750,000 4,010,400
Lowellville, Sanitary Sewer Systems Revenue (Browning-Ferris Industries Inc.)
7.25%, 6/1/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,100,000 1,192,059
Mahoning County, Health Care Facilities Revenue (Youngstown Osteopathic Hospital
Project)
7.60%, 8/1/2010 (LOC; Marine Midland Bank) . . . . . . . . . . . . . . . . . . . . . . 3,775,000 3,937,551
Marion County, Health Care Facilities Revenue, Refunding and Improvement
(United Church Homes Inc.) 6.375%, 11/15/2010 . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,193,920
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
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STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ ______________
OHIO (CONTINUED)
Montgomery County:
HR, Refunding (Grandview Hospital and Medical Center):
5.50%, 12/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,300,000 $ 1,378,039
5.65%, 12/1/2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,850,000 1,966,365
Limited General Obligation and Sewer Revenue 5.60%, 12/1/2016 . . . . . . . . . . . . . 1,380,000 1,485,805
Moraine, SWDR (General Motors Corp. Project) 6.75%, 7/1/2014 . . . . . . . . . . . . . . . 5,000,000 6,049,300
Middleburg Heights, Refunding 4.375%, 12/1/2018. . . . . . . . . . . . . . . . . . . . . . 5,725,000 5,353,791
North Royalton City School District 6.10%, 12/1/2019 (Insured; MBIA) . . . . . . . . . . . 2,500,000 2,800,550
State of Ohio:
Economic Development Revenue:
Ohio Enterprise Bond Fund (VSM Corp. Project) 7.375%, 12/1/2011 . . . . . . . . . . 885,000 965,022
(Sponge Inc. Project) 8.375%, 6/1/2014 . . . . . . . . . . . . . . . . . . . . . . 1,515,000 1,580,084
PCR (Standard Oil Co. Project)
6.75%, 12/1/2015 (Guaranteed; British Petroleum Co. p.l.c.) . . . . . . . . . . . . 2,700,000 3,285,819
SWDR (USG Corp. Project) 5.60%, 8/1/2032 . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,511,075
Ohio Air Quality Development Authority, Revenue, Refunding:
(Ohio Power Co. Project) 7.40%, 8/1/2009 . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,553,925
Pollution Control:
(Cleveland Electric Illuminating Co. Project) :
4.60%, 10/1/2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000,000 8,941,050
6.85%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,250,000 5,564,843
(Ohio Edison) 7.45%, 3/1/2016 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . 3,500,000 3,728,935
Ohio Building Authority, State Facilities (Juvenile Correctional Projects)
6.60%, 10/1/2014 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,660,000 1,894,193
Ohio Higher Educational Facility Commission, Revenue
(Denison University Project) 5.30%, 11/1/2021 . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,046,700
Ohio Housing Finance Agency, Mortgage Revenue:
(Saint Francis Court Apartment Project) 8%, 10/1/2026 (Insured; FHA) . . . . . . . . . 695,000 752,337
Single Family:
5.50%, 3/1/2019 (Collateralized; GNMA) . . . . . . . . . . . . . . . . . . . . . . 2,780,000 2,864,957
(GNMA Mortgage Backed Securities Program):
Zero Coupon, 9/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000 118,982
7.65%, 3/1/2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,555,000 2,028,365
Ohio Turnpike Commission, Turnpike Revenue, Highway Improvements:
4.50%, 2/15/2024 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,250,000 5,833,563
5.75%, 2/15/2024 (Prerefunded 2/15/2004) (a) . . . . . . . . . . . . . . . . . . . . . 6,100,000 6,732,387
Ohio Water Development Authority, Revenue:
(Fresh Water) 5.90%, 12/1/2015 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . 4,650,000 5,083,613
Pollution Control Facilities:
(Cleveland Electric Illuminating Project) 8%, 10/1/2023 . . . . . . . . . . . . . . 5,800,000 5,933,342
(Ohio Edison) 8.10%, 10/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . 3,700,000 3,901,687
Refunding:
(Ohio Edison) 7.625%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,182,450
(Toledo Edison Co.):
7.55%, 6/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,081,420
8%, 10/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,635,000 3,787,815
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ ______________
OHIO (CONTINUED)
Ottawa County, Sanitary Sewer Systems Special Assessment (Portage-Catawba
Island Sewer Project) 7%, 9/1/2011 (Insured; AMBAC) (Prerefunded 9/1/2001) (a) . . . . $ 1,000,000 $ 1,110,280
Parma, Hospital Improvement Revenue, Refunding
(Parma Community General Hospital Association) 5.375%, 11/1/2029 . . . . . . . . . . . 4,000,000 4,031,680
Rocky River City School District, School Improvement 5.375%, 12/1/2017 . . . . . . . . . . 2,265,000 2,422,078
Shelby County, Hospital Facilities Revenue, Refunding and Improvement
(The Shelby County Memorial Hospital Association) 7.70%, 9/1/2018 . . . . . . . . . . . 2,500,000 2,787,100
South Euclid, Recreation Facilities 7%, 12/1/2011 (Prerefunded 12/1/2001) (a). . . . . . . 2,285,000 2,553,556
Southwest Regional Water District, Water Revenue:
6%, 12/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000 1,760,448
6%, 12/1/2020 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,000 1,384,175
Student Loan Funding Corp.,
Student Loan Revenue, Refunding 7.20%, 8/1/2003 . . . . . . . . . . . . . . . . . . . . 1,180,000 1,224,510
Toledo 5.625%, 12/1/2011 (Insured; AMBAC). . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,104,920
University of Cincinnati, University and College Revenue, COP
6.75%, 12/1/2009 (Prerefunded 12/1/2001) (Insured; MBIA) (a) . . . . . . . . . . . . . 750,000 832,245
Warren:
7.75%, 11/1/2010 (Prerefunded 11/1/2000) (a) . . . . . . . . . . . . . . . . . . . . . 2,785,000 3,068,095
Waterworks Revenue, Refunding 5.50%, 11/1/2015 (Insured; FGIC) . . . . . . . . . . . . 1,450,000 1,576,774
Wauseon Exempted Village School District, Refunding and School Improvement
5.50%, 12/1/2022 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,648,450
West Holmes Local School District 5.375%, 12/1/2023 (Insured; MBIA). . . . . . . . . . . . 1,860,000 1,932,986
U.S. Related--2.8%
Commonwealth of Puerto Rico 5.375%, 7/1/2025 (Insured; MBIA) . . . . . . . . . . . . . . . 2,255,000 2,338,638
Commonwealth of Puerto Rico Highway and Transportation Authority 5%, 7/1/2038. . . . . . . 6,000,000 5,872,920
_______________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $270,165,891) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $289,234,950
_______________
Short-Term Municipal Investments--1.5%
- -------------------------------------------------------
Twinsburg, IDR, VRDN (United Stationers Supply Co.)
3.85% (LOC; PNC Bank) (b)
(cost $4,400,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,400,000 $ 4,400,000
_____________ _______________
TOTAL INVESTMENTS
(cost $274,565,891) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.8% $293,634,950
_______ _______________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2% $ 3,427,694
_______ _______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $297,062,644
_______ _______________
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
ACA American Capital Access IDR Industrial Development Revenue
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes
HR Hospital Revenue
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
______ _______ ________________ _________________
AAA Aaa AAA 38.9%
AA Aa AA 13.7
A A A 15.3
BBB Baa BBB 14.9
BB Ba BB 11.1
F1 Mig1 SP1 1.5
Not Rated (c) Not Rated (c) Not Rated (c) 4.6
_______
100.0%
_______
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) Securities payable on demand. Variable interest rate--subject to periodic
change.
(c) 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.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $274,565,891 $293,634,950
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 248,909
Interest receivable . . . . . . . . . . . . . . . . . . . 4,885,685
Receivable for shares of Beneficial Interest subscribed . . 203,160
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 18,370
_______________
298,991,074
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 138,400
Due to Distributor . . . . . . . . . . . . . . . . . . . 86,866
Payable for investment securities purchased . . . . . . . 1,582,107
Payable for shares of Beneficial Interest redeemed . . . 64,351
Accrued expenses . . . . . . . . . . . . . . . . . . . . 56,706
_______________
1,928,430
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $297,062,644
_______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $274,888,846
Accumulated net realized gain (loss) on investments . . . 3,104,739
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 19,069,059
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $297,062,644
_______________
NET ASSET VALUE PER SHARE
--------------------
Class A Class B Class C
______________ ______________ _______________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $239,947,155 $55,946,169 $1,169,320
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 18,367,079 4,280,917 89,407
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . $13.06 $13.07 $13.08
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $ 8,726,998
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . $ 807,760
Shareholder servicing costs--Note 3(c) . . . . . 459,777
Distribution fees--Note 3(b) . . . . . . . . . . 136,545
Professional fees . . . . . . . . . . . . . . . . 19,618
Custodian fees . . . . . . . . . . . . . . . . . 15,437
Registration fees . . . . . . . . . . . . . . . . 12,069
Prospectus and shareholders' reports . . . . . . 11,364
Trustees' fees and expenses--Note 3(d) . . . . . 2,184
Loan commitment fees--Note 2 . . . . . . . . . . 710
Miscellaneous . . . . . . . . . . . . . . . . . . 9,570
_____________
Total Expenses . . . . . . . . . . . . . . . . 1,475,034
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,251,964
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . $ 1,884,375
Net unrealized appreciation (depreciation)
on investments . . . . . . . . . . . . . . . . 2,572,353
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . 4,456,728
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $11,708,692
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,251,964 $ 14,777,849
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 1,884,375 2,235,917
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 2,572,353 5,571,976
_______________ _______________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 11,708,692 22,585,742
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,030,517) (12,500,637)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,203,307) (2,239,844)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18,140) (37,368)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (2,351,160)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (478,538)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (9,214)
_______________ _______________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,251,964) (17,616,761)
_______________ _______________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,010,150 10,666,412
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,969,568 9,479,918
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565,628 397,388
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,790,958 9,470,425
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,190 1,897,891
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,166 42,365
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,122,569) (29,311,483)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,099,831) (6,412,779)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---- (562,080)
_______________ _______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . 3,957,260 (4,331,943)
_______________ _______________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 8,413,988 637,038
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288,648,656 288,011,618
_______________ _______________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $297,062,644 $288,648,656
_______________ _______________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
________________________________
Six Months Ended
October 31, 1998 Year Ended
(Unaudited) April 30, 1998
_______________ _____________
CAPITAL SHARE TRANSACTIONS:
Class A
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538,273 824,378
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 290,807 731,376
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (933,161) (2,266,154)
_________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . (104,081) (710,400)
_________ __________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458,202 732,404
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 63,509 146,494
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (161,268) (495,475)
_________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . 360,443 383,423
_________ __________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,321 30,611
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 1,161 3,267
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---- (43,810)
_________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . 44,482 (9,932)
_________ __________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO 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, 1998 Year Ended April 30,
_______________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ _______ _______ _______ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . $12.86 $12.65 $12.58 $12.62 $12.70 $13.09
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .33 .67 .69 .71 .73 .74
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . .20 .34 .17 .14 (.05) (.36)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .53 1.01 .86 .85 .68 .38
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.33) (.67) (.69) (.71) (.73) (.74)
Dividends from net realized gain on investments . . -- (.13) (.10) (.18) (.03) (.03)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . (.33) (.80) (.79) (.89) (.76) (.77)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $13.06 $12.86 $12.65 $12.58 $12.62 $12.70
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 8.25%(2) 8.09% 6.91% 6.77% 5.63% 2.78%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . .91%(2) .90% .91% .89% .92% .81%
Ratio of net investment income
to average net assets . . . . . . . . . . . 5.04%(2) 5.17% 5.40% 5.49% 5.84% 5.57%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- -- .01% .12%
Portfolio Turnover Rate . . . . . . . . . . . . 21.09%(3) 24.73% 29.65% 43.90% 39.53% 7.73%
Net Assets, end of period (000's Omitted) . . . $239,947 $237,618 $242,572 $257,639 $273,225 $293,706
- ---------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO 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, 1998 Year Ended April 30,
_______________________________________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996 1995 1994
__________ _______ _______ _______ _______ _______
Net asset value, beginning of period . . . . . $12.87 $12.65 $12.59 $12.63 $12.71 $13.09
_______ _______ _______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . .30 .60 .62 .64 .66 .66
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . .20 .35 .16 .14 (.05) (.35)
_______ _______ _______ _______ _______ _______
Total from Investment Operations . . . . . . . .50 .95 .78 .78 .61 .31
_______ _______ _______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . (.30) (.60) (.62) (.64) (.66) (.66)
Dividends from net realized gain on investments . . -- (.13) (.10) (.18) (.03) (.03)
_______ _______ _______ _______ _______ _______
Total Distributions . . . . . . . . . . . . . . (.30) (.73) (.72) (.82) (.69) (.69)
_______ _______ _______ _______ _______ _______
Net asset value, end of period . . . . . . . . $13.07 $12.87 $12.65 $12.59 $12.63 $12.71
_______ _______ _______ _______ _______ _______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . 7.70%(2) 7.62% 6.27% 6.19% 5.06% 2.24%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . 1.42%(2) 1.41% 1.42% 1.42% 1.44% 1.38%
Ratio of net investment income
to average net assets . . . . . . . . . . . 4.51%(2) 4.65% 4.87% 4.94% 5.29% 4.89%
Decrease reflected in above expense ratios due
to undertakings by the Manager . . . . . . -- -- -- -- .01% .10%
Portfolio Turnover Rate . . . . . . . . . . . . 21.09%(3) 24.73% 29.65% 43.90% 39.53% 7.73%
Net Assets, end of period (000's Omitted) . . . $55,946 $50,453 $44,746 $40,476 $32,797 $27,657
- ---------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO 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, 1998 Year Ended April 30,
_______________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
_________ _______ _______ _______
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $12.88 $12.66 $12.59 $12.68
_______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .28 .57 .59 .43
Net realized and unrealized gain (loss) on investments . . . . . . . . .20 .35 .17 .09
_______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .48 .92 .76 .52
_______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.28) (.57) (.59) (.43)
Dividends from net realized gain on investments . . . . . . . . . . . . -- (.13) (.10) (.18)
_______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.28) (.70) (.69) (.61)
_______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $13.08 $12.88 $12.66 $12.59
_______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 7.50%(3) 7.35% 6.07% 5.66%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.63%(3) 1.66% 1.64% 1.63%(3)
Ratio of net investment income to average net assets . . . . . . . . . 4.29%(3) 4.38% 4.44% 4.66%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 21.09%(4) 24.73% 29.65% 43.90%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $1,169 $579 $694 $1
- ---------
(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, OHIO 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, as amended (the "Act") as a non-diversified
open-end management investment company, and operates as a series company
currently offering thirteen series including the Ohio 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. Under the terms of the custody
agreement, the Fund received net earnings credits of $10,893 during the period
ended October 31, 1998 based on available cash balances left on deposit. Income
earned under this arrangement is included in interest income.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 of 1986, as
amended (the "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 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 (the "Facility") to be utilized for temporary and
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
October 31, 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.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $1,796 during the period ended October 31, 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,
Class B and Class C shares pay the Distributor for distributing their 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, 1998, Class B and Class C
shares were charged $133,374 and $3,171, respectively, pursuant to the
Distribution Plan.
(C) Under the Shareholder Services Plan, Class A, Class B and Class C shares
pay the Distributor at an annual rate of .25 of 1% of the value of their average
daily net assets 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, 1998, Class A, Class B and Class C
shares were charged $299,420, $66,687 and $1,057, respectively, pursuant to the
Shareholder Services Plan.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 October 31, 1998, the Fund was charged $63,072 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 October 31, 1998
amounted to $62,808,008 and $59,954,319, respectively.
At October 31, 1998, accumulated net unrealized appreciation on investments
was $19,069,059, consisting of $19,198,342 gross unrealized appreciation and
$129,283 gross unrealized depreciation.
At October 31, 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).
DREYFUS PREMIER STATE MUNICIPAL
BOND FUND, OHIO 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. 057/619SA9810
SEMI-ANNUAL REPORT
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DREYFUS PREMIER STATE
MUNICIPAL BOND FUND
OHIO SERIES
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OCTOBER 31, 1998
