DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the Dreyfus Premier State
Municipal Bond Fund--Pennsylvania 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 . . . . . . . . . . . . . . . . . . . . 4.12% 4.73%
Class B shares . . . . . . . . . . . . . . . . . . . . 3.86% 4.44%
Class C shares . . . . . . . . . . . . . . . . . . . . 3.72% 4.18%
</TABLE>
ECONOMIC REVIEW
In the face of soaring consumer confidence and strong first-quarter economic
growth, the Federal Reserve Board 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 workers' 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 supply of new issues in Pennsylvania has been rather low over the last
six months. The Fund has still been able to make selective purchases of new
issue debt at attractive levels. While demand has increased over the last few
months, supply has remained low through October and is not expected to increase
until later in 1998. The Fund intends to take advantage of this excess demand by
selectively selling bonds in the secondary market, while purchasing new issues
when they become available.
Municipals are still considered to be a very good investment when compared to
U. S. Treasury bonds. A twenty-year insured, AAA-rated, tax-exempt municipal
bond currently yields over 95% of the taxable thirty-year U. S. Treasury bond.
Over the last year municipals have averaged 89% of Treasuries.
PORTFOLIO OVERVIEW
In general, the Fund has maintained an aggressive investment posture and has
continued to purchase discounted securities, which we expect to perform well in
an improving market. Over the last six months, interest rates declined through
September but then retraced most of this decline in October. The Fund
anticipated a late summer rally and positioned itself to take advantage of
strong retail demand for bonds during this time frame. By October, interest
rates had dropped to such a low level that the Fund became more defensive. At
the end of October, interest rates had backed up to a point where the Fund began
to purchase discounts again. This strategy will remain in place as long as
discounts can 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 deeper 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 have remained fairly expensive when compared to insured
securities. The Fund continues to take advantage of this tight spread
relationship by favoring higher rated securities, which are more liquid. This
strategy will continue to give the Fund more flexibility to react to a weak
market, which can experience liquidity constraints.
The Fund' s Class A shares had a six-month total return on October 31, 1998,
of 4.12% , which compares favorably to the Lipper Pennsylvania Municipal Bond
average of 4.07%. Because the Fund purchased discounts over the last six months
while interest rates fell, it was able to take advantage of an improving market
that occurred through September. The Fund is anticipating a strong demand for
Pennsylvania issues through November and is positioning the Fund to take
advantage of this opportunity in late 1998.
Included in the 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 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 applicable contingent 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-Pennsylvania 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, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments--99.3% Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
Pennsylvania--97.7%
Allegheny County Higher Educational Building Authority, University Revenue
(Duquesne University Project) 5%, 3/1/2021 (Insured; AMBAC) . . . . . . . . . . . . . . $ 2,000,000 $ 1,977,320
Allegheny County Hospital Development Authority, Revenue, Refunding
(Health Center--UPMC Health System):
4.50%, 8/1/2015 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 1,903,660
5%, 11/1/2023 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,260,000 4,179,529
(Hospital--South Hills Health) 5.125%, 5/1/2029 . . . . . . . . . . . . . . . . . . . . 3,000,000 2,927,670
(Health Center, University of Pittsburgh) 5.625%, 11/1/2023 (Insured; MBIA) . . . . . . 1,300,000 1,375,595
Allegheny County Industrial Development Authority, Medical Center Revenue
Refunding (Presbyterian Medical Center of Oakmont Pennsylvania, Inc.)
6.75%, 2/1/2026 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,825,000 2,032,393
Allegheny County Residential Finance Authority, SFMR:
7.40%, 12/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,665,000 1,760,022
7.95%, 6/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,130,000 1,185,901
Beaver County, Refunding 5.30%, 10/1/2026 (Insured; MBIA). . . . . . . . . . . . . . . . . 5,500,000 5,623,310
Beaver County Hospital Authority, Revenue, Refunding (Valley Health System Inc.
5%, 5/15/2018 (Inusred; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,800,000 3,769,486
Beaver County Industrial Development Authority, Exempt Facilities Revenue
(Shippingport Project) 5.375%, 6/1/2028 (Insured; AMBAC) . . . . . . . . . . . . . . . . 2,500,000 2,539,775
Beaver County Industrial Development Authority, PCR, Refunding:
(Ohio Edison Project) 7.75%, 9/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . 3,150,000 3,287,498
(Pennsylvania Power Company Mansfield Project) 7.15%, 9/1/2021 . . . . . . . . . . . . . 3,000,000 3,199,740
Berks County Municipal Authority, Revenue:
(Phoebe Berks Village, Inc. Project) 8.25%, 5/15/2022 . . . . . . . . . . . . . . . . . 2,445,000 2,673,314
Refunding (Phoebe--Devitt Homes Project) 5.50%, 5/15/2015 . . . . . . . . . . . . . . . 2,280,000 2,229,110
Blair County Hospital Authority, Revenue (Altoona Hospital Project):
6.375%, 7/1/2013 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,467,900
Refunding, 5%, 7/1/2022 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . 2,100,000 2,058,441
Bradford County Industrial Development Authority, SWDR
(International Paper Company Projects) 6.60%, 3/1/2019 . . . . . . . . . . . . . . . . . 4,250,000 4,682,055
Dauphin County General Authority, Revenue (Office and Parking, Riverfront
Office)
6%, 1/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,029,280
Downingtown Area School District 5.55%, 4/1/2018 . . . . . . . . . . . . . . . . . . . . . 1,540,000 1,612,103
Erie County Higher Education Building Authority, College Revenue, Refunding
(Mercyhurst College Project) 5.75%, 3/15/2020 . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,069,620
Erie School District, Refunding, Zero Coupon, 9/1/2015 (Insured; FSA). . . . . . . . . . . 1,135,000 498,276
Harrisburg, Refunding:
Zero Coupon, Series D, 9/15/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . 1,510,000 875,815
Zero Coupon, Series F, 9/15/2010 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . 1,350,000 783,014
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Pennsylvania (continued)
Harrisburg Authority, Office and Parking Revenue:
5.75%, 5/1/2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000 $ 1,013,510
6%, 5/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,026,720
Revenue (Pooled Bond Program)
5.625%, 9/15/2022 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000,000 1,057,880
Hazleton Area School District 5%, 3/1/2017 (Insured; FGIC) . . . . . . . . . . . . . . . . 5,750,000 5,764,490
Lancaster Area Sewer Authority, Revenue 4.50%, 4/1/2018 (Insured; MBIA). . . . . . . . . . 2,730,000 2,572,861
Lehigh County General Purpose Authority, Revenue:
(Wiley House):
8.75%, 11/1/2014 (Prerefunded, 11/1/1999) (a) . . . . . . . . . . . . . . . . . . . . 3,785,000 4,064,939
9.50%, 11/1/2016 (Prerefunded, 11/1/2001) (a) . . . . . . . . . . . . . . . . . . . . 4,930,000 5,804,878
Luzerne County Industrial Development Authority, Exempt Facilities Revenue,
Refunding
(Pennsylvania Gas and Water Company Project) 7.125%, 12/1/2022 . . . . . . . . . . . . . 4,000,000 4,403,880
Montgomery County 5.40%, 9/15/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,360,000 2,450,789
Montgomery County Higher Educational and Health Authority, Revenue:
First Mortgage (Montgomery Income Project) 10.50%, 9/1/2020 . . . . . . . . . . . . . . 2,895,000 3,140,120
Hospital Refunding (Abington Memorial Hospital) 4.875%, 6/1/2018 (Insured; AMBAC) . . . 5,000,000 4,900,900
Montgomery County Industrial Development Authority, RRR
7.50%, 1/1/2012 (LOC; Banque Paribas) . . . . . . . . . . . . . . . . . . . . . . . . . 14,715,000 15,586,717
Norristown Municipal Waste Authority, Sewer Revenue
5.125%, 11/15/2023 (Insured; FGIC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250,000 4,249,915
North Allegheny School District 5.45%, 5/1/2018 (Insured; FGIC). . . . . . . . . . . . . . 1,195,000 1,250,090
North Hills School District, Refunding 4.75%, 10/15/2017 (Insured; FSA). . . . . . . . . . 625,000 610,856
Northampton County Industrial Development Authority, PCR, Refunding
(Bethlehem Steel) 7.55%, 6/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,700,000 6,259,740
Pennsylvania, COP, Refunding 5%, 7/1/2015 (Insured; AMBAC) . . . . . . . . . . . . . . . . 11,885,000 11,850,890
Pennsylvania Economic Development Financing Authority:
RRR (Northampton Generating Project):
6.40%, 1/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,652,850
6.50%, 1/1/2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,500,000 6,927,505
Wastewater Treatment Revenue (Sun Co. Inc.--R and M Project) 7.60%, 12/1/2024 . . . . . 4,240,000 4,939,388
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue
7.05%, 10/1/2016 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,654,425
Pennsylvania Housing Finance Agency:
6.50%, 7/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,750,000 2,944,838
Single Family Mortgage:
6.75%, 4/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,191,970
6.85%, 4/1/2016 (Insured; FHA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,700,000 3,905,535
6.90%, 4/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,250,000 6,794,063
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1998 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
Pennsylvania (continued)
Philadelphia:
5%, 5/15/2020 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,250,000 $ 2,227,995
Gas Works Revenue:
5.25%, 8/1/2024 (Insured; FSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,067,900
6.375%, 7/1/2026 (Insured; CMAC) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,885,000 7,631,541
Water and Wastewater Revenue, Refunding:
5.75%, 6/15/2013 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000,000 8,670,800
5.25%, 6/15/2023 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,755,000 15,942,800
Philadelphia Authority for Industrial Development, Industrial and Commercial
Revenue
(Girard Estate Coal Mining Project) 5.50%, 11/15/2016 . . . . . . . . . . . . . . . . . 1,000,000 1,048,600
Philadelphia Hospital and Higher Education Facilities Authority:
HR:
(Albert Einstein Medical Center) 7%, 10/1/2021 (Prerefunded, 10/1/2001) (a) . . . . . 500,000 554,890
(Refunding--Children's Hospital Philadelphia):
5%, 2/15/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 2,907,660
5%, 2/15/2021 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,565,000 10,253,333
(Refunding--Temple University Hospital) 6.625%, 11/15/2023 . . . . . . . . . . . . . . 16,240,000 17,426,494
Pittsburgh Urban Redevelopment Authority:
Mortgage Revenue:
7.05%, 4/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,785,000 1,885,585
(Refunding--Sidney Square Project) 6.65%, 9/1/2028 . . . . . . . . . . . . . . . . . . 3,350,000 3,566,008
Single Family Mortgage 7.40%, 4/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . 860,000 906,165
Schuylkill County Industrial Development Authority, Refunding
First Mortgage Revenue (Valley Health Concerns) 8.75%, 3/1/2012 . . . . . . . . . . . . 2,500,000 2,557,525
South Fork Municipal Authority, HR, Refunding (Conemaugh Valley Memorial
Hospital)
5%, 7/1/2018 (Insured; MBIA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,560,000 1,547,348
Washington County Industrial Development Authority, PCR
(West Pennsylvania Power Company Mitchell) 6.05%, 4/1/2014 (Insured; AMBAC) . . . . . . 3,000,000 3,316,800
Washington County Industrial Development Authority, Revenue, Refunding
(Presbyterian Medical Center) 6.75%, 1/15/2023 (Insured; FHA) . . . . . . . . . . . . . 3,000,000 3,307,529
West Shore Area Hospital Authority, HR, Refunding
(Holy Spirit Hospital Project) 5.65%, 1/1/2017 (Insured; MBIA) . . . . . . . . . . . . . 2,200,000 2,324,321
U.S. Related--1.6%
Guam Airport Authority, Revenue, Refunding 6.50%, 10/1/2023. . . . . . . . . . . . . . . . 2,000,000 2,180,359
Puerto Rico Electric Power Authority, Power Revenue 4.75%, 7/1/2021. . . . . . . . . . . . 2,200,000 2,156,461
_____________
TOTAL INVESTMENTS (cost $252,833,960). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.3% $268,240,690
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7% $ 1,948,707
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $270,189,397
_______ _____________
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CMAC Capital Market Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
AAA Aaa AAA 54.3%
AA Aa AA 7.3
A A A 16.8
BBB Baa BBB 9.4
Not Rated(b) Not Rated(b) Not Rated(b) 12.2
_______
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 which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Fund's Manager to be of comparable quality to
those rated securities in which the Fund may invest.
(c) At October 31, 1998, the Fund had $79,565,639 (29.5%) of net assets
invested in securities whose payment of principal and interest is dependent
upon revenues generated from health care projects.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1998 (UNAUDITED)
Cost Value
____________ ___________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $252,833,960 $268,240,690
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 559,025
Interest receivable . . . . . . . . . . . . . . . . . . . 4,805,245
Receivable for investment securities sold . . . . . . . . 1,653,647
Receivable for shares of Beneficial Interest subscribed . . 177,560
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 10,839
____________
275,447,006
____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 127,224
Due to Distributor . . . . . . . . . . . . . . . . . . . 90,404
Payable for investment securities purchased . . . . . . . 4,975,790
Payable for shares of Beneficial Interest redeemed . . . 35,889
Accrued expenses . . . . . . . . . . . . . . . . . . . . 28,302
____________
5,257,609
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,189,397
____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $250,389,429
Accumulated net realized gain (loss) on investments . . . 4,393,238
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 15,406,730
____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,189,397
____________
NET ASSET VALUE PER SHARE
__________________________________________________________
Class A Class B Class C
_____________ _____________ _____________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $193,934,951 $75,717,877 $536,569
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,448,829 4,471,611 31,651
NET ASSET VALUE PER SHARE. . . . . . . . . . . . . . . . . . . . . . . . $16.94 $16.93 $16.95
_______ _______ _______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $ 8,075,373
EXPENSES: Management fee--Note 3(a) . . . . . . . . . . . . . . . . $ 754,525
Shareholder servicing costs--Note 3(c) . . . . . . . . . 453,111
Distribution fees--Note 3(b) . . . . . . . . . . . . . . 192,261
Custodian fees . . . . . . . . . . . . . . . . . . . . . 14,564
Professional fees . . . . . . . . . . . . . . . . . . . . 13,208
Prospectus and shareholders' reports . . . . . . . . . . 9,530
Registration fees . . . . . . . . . . . . . . . . . . . . 9,504
Trustees' fees and expenses--Note 3(d) . . . . . . . . . 1,589
Loan commitment fees--Note 2 . . . . . . . . . . . . . . 668
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 8,098
____________
Total Expenses . . . . . . . . . . . . . . . . . . . . 1,457,058
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,618,315
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 2,483,622
Net unrealized appreciation (depreciation) on investments . . 1,776,510
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 4,260,132
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $10,878,447
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,618,315 $ 13,622,614
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . 2,483,622 4,306,524
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . . . 1,776,510 7,422,966
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 10,878,447 25,352,104
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,912,381) (10,251,754)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,695,038) (3,365,617)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,896) (5,243)
Net realized gain on investments:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---- (3,140,732)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---- (1,153,373)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---- (1,463)
_____________ _____________
Total Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,618,315) (17,918,182)
_____________ _____________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,257,968 6,668,660
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,009,679 6,213,872
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,323 430,820
Dividends reinvested:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,439,947 7,117,723
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,063,477 2,937,128
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,525 4,659
Cost of shares redeemed:
Class A shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,893,785) (24,469,890)
Class B shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,386,725) (7,890,851)
Class C shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (129,179) (4,646)
_____________ _____________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions . (5,443,770) (8,992,525)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . (1,183,638) (1,558,603)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271,373,035 272,931,638
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,189,397 $271,373,035
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193,101 398,013
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 144,297 424,787
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (645,528) (1,461,282)
________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . (308,130) (638,482)
________ __________
Class B
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,814 370,499
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 62,916 175,370
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (319,635) (471,922)
________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . (18,905) 73,947
________ __________
Class C
________
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,323 25,755
Shares issued for dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . 208 277
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,626) (275)
________ __________
Net Increase (Decrease) in Shares Outstanding . . . . . . . . . . . . . . . 3,905 25,757
________ __________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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 . . . . . . $16.68 $16.23 $16.17 $16.12 $16.01 $16.61
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . .42 .85 .85 .87 .91 .95
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . .26 .71 .24 .32 .11 (.57)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . .68 1.56 1.09 1.19 1.02 .38
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . (.42) (.85) (.85) (.87) (.91) (.95)
Dividends from net realized gain on investments . . -- (.26) (.18) (.27) -- (.03)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . (.42) (1.11) (1.03) (1.14) (.91) (.98)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . $16.94 $16.68 $16.23 $16.17 $16.12 $16.01
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . 8.17%(2) 9.83% 6.89% 7.46% 6.65% 2.17%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . .92%(2) .92% .92% .92% .92% .81%
Ratio of net investment income
to average net assets . . . . . . . . . . . . 4.97%(2) 5.09% 5.22% 5.28% 5.77% 5.61%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . -- -- -- -- .01% .12%
Portfolio Turnover Rate . . . . . . . . . . . . . 17.54%(3) 34.82% 60.57% 52.69% 55.19% 7.21%
Net Assets, end of period (000's Omitted) . . . . $193,935 $196,055 $201,229 $216,802 $219,949 $235,619
- -----------------------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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 . . . . . . . $16.67 $16.23 $16.16 $16.11 $16.01 $16.60
______ ______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . .38 .77 .77 .79 .83 .85
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . .26 .70 .25 .32 .10 (.56)
______ ______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . .64 1.47 1.02 1.11 .93 .29
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . (.38) (.77) (.77) (.79) (.83) (.85)
Dividends from net realized gain on investments . . -- (.26) (.18) (.27) -- (.03)
______ ______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . (.38) (1.03) (.95) (1.06) (.83) (.88)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . $16.93 $16.67 $16.23 $16.16 $16.11 $16.01
______ ______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN(1) . . . . . . . . . . . . . . 7.66%(2) 9.20% 6.41% 6.92% 6.02% 1.65%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . 1.43%(2) 1.43% 1.43% 1.43% 1.44% 1.38%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . 4.45%(2) 4.57% 4.71% 4.76% 5.22% 4.95%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . -- -- -- -- .01% .10%
Portfolio Turnover Rate . . . . . . . . . . . . . . 17.54%(3) 34.82% 60.57% 52.69% 55.19% 7.21%
Net Assets, end of period (000's Omitted) . . . . . $75,718 $74,855 $71,671 $72,610 $70,062 $59,057
- -----------------------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA 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 . . . . . . . . . . . . . . . . . $16.69 $16.23 $16.16 $16.18
______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .36 .70 .69 .53
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . . . . . . . . .26 .72 .25 .25
______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . . . . . . . . .62 1.42 .94 .78
______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.36) (.70) (.69) (.53)
Dividends from net realized gain on investments . . . . . . . . . . . . -- (.26) (.18) (.27)
______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . (.36) (.96) (.87) (.80)
______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $16.95 $16.69 $16.23 $16.16
______ ______ ______ ______
TOTAL INVESTMENT RETURN(2) . . . . . . . . . . . . . . . . . . . . . . . . 7.38%(3) 8.91% 5.92% 6.71%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . 1.69%(3) 1.69% 1.83% 1.70%(3)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . . . . . . . . 4.18%(3) 3.98% 4.28% 4.46%(3)
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . . . . . . . . 17.54%(4) 34.82% 60.57% 52.69%
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $537 $463 $32 $21
- -----------------------------
(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, PENNSYLVANIA 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 Pennsylvania 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 credit of $12,434 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.
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.
DREYFUS PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 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 (" 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.
(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 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, 1998,
Class B and Class C shares were charged $190,307 and $1,954, 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 $247,161, $95,153 and $652,
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, 1998, the Fund was charged $70,839 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 $47,229,450 and $49,133,328, respectively.
At October 31, 1998, accumulated net unrealized appreciation on investments
was $15,406,730, consisting of $15,546,039 gross unrealized appreciation and
$139,309 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, PENNSYLVANIA 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. 058/620SA9810
SEMI-ANNUAL REPORT
- -------------------------------------------------------------------------------
DREYFUS PREMIER STATE
MUNICIPAL BOND FUND
PENNSYLVANIA SERIES
- -------------------------------------------------------------------------------
OCTOBER 31, 1998
(reg.tm)
