DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus California
Municipal Income, Inc. For its semi-annual reporting period ended March 31,
1996, your portfolio produced a total return of 4.11% based on net asset
value, including bond price changes and interest income.* Income dividends
exempt from Federal and State of California personal income taxes of $.246
per share were paid to shareholders.** This is equivalent to an annualized
tax-free distribution rate per share of 5.96%.***
THE ECONOMY
Fresh signs of economic growth appeared in the first quarter of this
year. There were encouraging reports of strength in the housing market -
sales of new homes and new home construction surged in February. Factory
orders increased and order backlogs rose in January for the fifth consecutive
month. At present, there are indications that the labor market may be
tightening. Employment is rising and initial claims for unemployment
insurance are lessening. Some increases in real wages may result, a
possibility well worth noting since worker wages are emerging as a political
issue in this year's election. The surprisingly strong employment figures in
February caused a sharp rise in interest rates. As a result, fixed-income
returns for the first quarter of this year were negative.
Several factors that temporarily depressed economic activity have ended.
With the arrival of spring, the severe winter weather which suppressed
construction and discouraged consumer shopping is over. In addition, the
17-day strike at two General Motors brake-parts plants has been settled. This
strike had nearly resulted in a complete shutdown of GM North American
manufacturing.
Apparently satisfied with the pace of economic growth, the Federal
Reserve Board left the Federal Funds rate unchanged in March. Over the past
12 months, the Fed has reduced the level of short-term interest rates three
times to spur the sluggish economy, the last reduction occurring on January
31, 1996.
Nevertheless, we are reluctant to paint an overly optimistic business
picture since much economic data still remains mixed. Business capital
spending has been an important stimulant to economic growth over the past few
years, particularly in light of the retrenchment in consumer spending. A
recent survey by the Commerce Department revealed that businesses plan only
modest increases in spending on new buildings and equipment this year
compared to 1995. Overall, the survey indicated that capital spending would
rise only 1.5% compared to last year's growth rate of 8.1%. The survey also
points out a significant divergence between the spending plans of
manufacturing companies and those of retailers and wholesalers. Influenced by
strong export growth, capital spending by manufacturers is estimated to rise
7.2%. Conversely, weak consumer spending has resulted in retailers and
wholesalers cutting their capital spending estimates by 4%. The more cautious
approach to business spending may be an indication that overall economic
growth in 1996 will be modest.
THE MARKET
The municipal market experienced a dramatic downturn late in the first
quarter. The weakness continues as this letter is being written, although
some improvement has been seen. The expectations of faster economic growth
combined with rising commodity prices raises the specter of future rising
inflation - just what long-term bond investors fear most.
The most recent market peak in prices was in mid-February with yields on
good quality issues trading around 5.30%. By early April, prices had declined
and yield levels had risen above 6.0%. The last time we experienced a
downward move in the market of similar magnitude was in 1994.
Markets rarely move in one direction for an extended period of time,
therefore we are optimistic that much of the market correction is behind us.
We remain cautious, however, awaiting confirmation of a bottom before
pursuing a more aggressive strategy.
THE PORTFOLIO
Your portfolio was well positioned during the reporting period for the
market downturn which occurred. We have maintained a relatively high average
coupon in the portfolio over the years in an effort to provide maximum
tax-exempt income. An ancillary effect of this strategy is to provide some
protection to the portfolio in the event the market declines. Additionally,
the relatively conservative maturity structure contributed to its defensive
character. This worked quite well during the recent decline in prices,
helping the portfolio to outperform many of its competitors.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are 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
April 15, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
***Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the market
price per share at the end of the period.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.5% AMOUNT VALUE
__________ __________
<S> <C> <C>
CALIFORNIA-97.0%
Bakersfield Central District Development Agency, Tax Allocation Revenue,
Refunding (Downtown Bakersfield Redevelopment) 6.625%, 4/1/2015......... $ 1,000,000 $ 1,016,390
California Department of Water Resources, Revenue (Central Valley Project)
9.620%, 12/1/2026 (a,b)................................................. 900,000 951,750
California Educational Facilities Authority, Revenue (University of San
Francisco)
6.40%, 10/1/2017........................................................ 1,100,000 1,121,274
California Pollution Control Financing Authority, SWDR:
(Browning-Ferris Industries) 6.75%, 9/1/2019............................ 600,000 625,866
(Keller Canyon Landfill Co. Project) 6.875%, 11/1/2027.................. 1,000,000 1,054,560
California Public Works Board, LR:
(Department of Corrections - Susanville State Prison) 5.375%, 6/1/2012.. 2,000,000 1,874,520
(Various University of California Projects):
6.60%, 12/1/2022 (Prerefunded 12/1/2002) (c).......................... 800,000 904,760
Refunding 5.50%, 6/1/2021............................................. 1,000,000 922,620
Capistrano Unified School District, Special Tax
(Community Facilities District Number 87-1 - Aliso Viejo) 8.375%, 10/1/2020 2,000,000 2,126,460
Compton Community Redevelopment Agency, Tax Allocation Revenue,
Refunding (Walnut Industrial Park) 8.10%, 8/1/2013 (Prerefunded 8/1/1999) (c) 1,000,000 1,133,610
Costa Mesa City Hall and Public Safety Facilities, Inc., LR (Victoria Street)
7.60%, 10/1/2018 (Prerefunded 10/1/1997) (c)............................ 1,000,000 1,054,640
Emeryville Public Financing Authority, Revenue
(Shellmound Park Redevelopment Project) 6.80%, 5/1/2014................. 500,000 515,970
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue
6%, 1/1/2034............................................................ 1,000,000 937,130
Fountain Valley Agency for Community Development, Tax Allocation Revenue
(City Center Area Redevelopment Project) 9.10%, 1/1/2015................ 2,500,000 2,563,075
City of Fresno, Health Facility Revenue, Refunding (Holy Cross Health System
Corp.)
5.625%, 12/1/2018....................................................... 750,000 703,425
City of Highland, Special Tax (Community Facilities District Number 90-1)
8.60%, 9/1/2015......................................................... 2,000,000 2,115,520
Irvine Ranch Water District Joint Powers Agency, Local Pool Revenue
8.25%, 8/15/2023........................................................ 1,000,000 1,085,820
Northern California Power Agency, Public Power Revenue,
Refunding (Hydroelectric Project No.1) 8%, 7/1/2013 (Prerefunded 7/1/1996) (c) 600,000 618,882
Orange County, Special Tax:
(Community Facilities District Number 87-5-Rancho Santa Margarita)
7.80%, 8/15/2013 (Prerefunded 8/15/1998) (c).......................... 1,000,000 1,103,030
(Community Facilities District Number 88-1 - Aliso Viejo)
8.10%, 8/15/2013 (Prerefunded 8/15/1998) (c).......................... 1,000,000 1,106,870
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_________ _________
CALIFORNIA (CONTINUED)
Palmdale Civic Authority, Tax Allocation Revenue,
Refunding (Merged Redevelopment Project Areas) 6.60%, 9/1/2034.......... $ 1,000,000 $ 1,050,520
Redwood Empire Financing Authority, COP 6.40%, 12/1/2023.................... 4,000,000 3,905,880
Riverside County, Single Family Revenue 10.50%, 9/1/2014.................... 40,000 41,974
Sacramento Municipal Utility District, Electric Revenue,
Refunding 7.875%, 8/15/2016 (Prerefunded 8/15/1998) (c)................. 1,500,000 1,657,065
San Diego, IDR (San Diego Gas and Electric Co.) 7.375%, 12/1/2021........... 600,000 618,426
San Joaquin Hills Transportation Corridor Agency, Toll Road Revenue
6.75%, 1/1/2032......................................................... 1,000,000 1,027,430
San Jose, MFHR 9.121%, 4/1/2012 (a)......................................... 3,000,000 3,487,500
Santa Cruz County Public Financing Authority, Tax Allocation Revenue
6.20%, 9/1/2023......................................................... 2,000,000 1,939,700
Temecula Valley Unified School District, Special Tax
(Community Facilities District Number 89-3) 8%, 9/1/2019 (d)........... 2,000,000 1,300,000
Walnut Improvement Agency, Tax Allocation Revenue (Walnut Improvement
Project):
8%, 9/1/2018............................................................ 230,000 252,480
8%, 9/1/2018 (Prerefunded 9/1/1998) (c)................................. 1,000,000 1,109,100
U.S. RELATED-2.5%
Guam Power Authority, Revenue 6.75%, 10/1/2024.............................. 1,000,000 1,034,580
_________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $40,032,023)...................................................... $40,960,827
==========
SHORT-TERM MUNICIPAL INVESTMENTS-.5%
CALIFORNIA:
California Pollution Control Financing Authority, RRR, VRDN
Refunding (Ultra Power-Malaga Project)
3% (LOC; Bank of America National Trust & Savings Association) (e,f).... $ 100,000 $ 100,000
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue,
VRDN
Refunding 3% (Insured; MBIA) (LOC; Credit Locale de France) (e,f)....... 100,000 100,000
_________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $200,000)......................................................... $ 200,000
==========
TOTAL INVESTMENTS-100.0%
(cost $40,232,023)...................................................... $41,160,827
==========
</TABLE>
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
COP Certificate of Participation LR Lease Revenue
IDR Industrial Development Revenue MFHR Multi-Family Housing Revenue
LOC Letter of Credit RRR Resources Recovery Revenue
MBIA Municipal Bond Investors Assurance SWDR Solid Waste Disposal Revenue
Insurance Corporation VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (G) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _____ ___________________ _____________________
<S> <C> <C> <C>
AAA Aaa AAA 24.3%
AA Aa AA 4.0
A A A 20.9
BBB Baa BBB 31.6
F1 MIG1, VMIG1, P1 SP1, A1 .5
Not Rated (h) Not Rated (h) Not Rated (h) 18.7
______
100.0%
=======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse floater security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1996, this security amounted to $951,750 or 2.3% of net assets.
(c) 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.
(d) Non-income producing security; interest payment in default.
(e) Secured by letters of credit.
(f) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates of market interest rates.
(g) Fitch currently provides creditworthiness information for a limited
number of investments.
(h) Securities which, while not rated by Fitch, Moody's or 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 independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1996 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $40,232,023)-see statement...................................... $41,160,827
Cash.................................................................... 38,477
Interest receivable..................................................... 811,778
Prepaid expenses........................................................ 8,051
__________
42,019,133
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $24,902
Accrued expenses........................................................ 66,646 91,548
________ ________
NET ASSETS ................................................................ $41,927,585
=============
REPRESENTED BY:
Paid-in capital......................................................... $41,617,951
Accumulated undistributed investment income-net......................... 108,675
Accumulated net realized (loss) on investments.......................... (727,845)
Accumulated net unrealized appreciation on investments-Note 3........... 928,804
__________
NET ASSETS at value applicable to 4,502,021 outstanding shares of
Common Stock, equivalent to $9.31 per share
(110 million shares of $.001 par value authorized)...................... $41,927,585
=============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $1,378,289
EXPENSES:
Management fee-Note 2(a).............................................. $147,991
Legal fees............................................................ 20,954
Directors' fees and expenses-Note 2(c)................................ 16,900
Auditing fees......................................................... 13,462
Shareholder servicing costs-Note 2(b)................................. 11,680
Shareholders' reports................................................. 8,472
Registration fees..................................................... 4,038
Custodian fees........................................................ 2,371
Miscellaneous......................................................... 4,127
_________
TOTAL EXPENSES.................................................. 229,995
_________
INVESTMENT INCOME-NET........................................... 1,148,294
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized (loss) on investments-Note 3............................... $ (450)
Net unrealized appreciation on investments.............................. 435,165
_________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 434,715
_________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,583,009
============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
SEPTEMBER 30, MARCH 31, 1996
1995 (UNAUDITED)
________ __________
<S> <C> <C>
OPERATIONS:
Investment income-net................................................ $ 2,362,343 $ 1,148,294
Net realized (loss) on investments................................... (726,947) (450)
Net unrealized appreciation on investments for the period............ 2,023,417 435,165
__________ __________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 3,658,813 1,583,009
__________ __________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................ (2,431,090) (1,107,497)
Net realized gain on investments..................................... (216,997) __
__________ __________
TOTAL DIVIDENDS.................................................... (2,648,087) (1,107,497)
__________ __________
CAPITAL STOCK TRANSACTIONS;
Dividends reinvested-Note 1(c)....................................... __ __
__________ __________
TOTAL INCREASE IN NET ASSETS................................... 1,010,726 475,512
NET ASSETS:
Beginning of period.................................................. 40,441,347 41,452,073
__________ __________
End of period (including undistributed investment income-net:
$67,878 in 1995 and $108,675 in 1996).............................. $41,452,073 $41,927,585
=========== ===========
SHARES SHARES
__________ __________
CAPITAL SHARE TRANSACTIONS;
Increase In Shares Outstanding As A Result Of Dividends Reinvested... __ __
=========== ===========
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the financial statements and market price
data for the Fund's shares.
<TABLE>
<CAPTION>
SIX MONTHS ENDED
YEAR ENDED SEPTEMBER 30, MARCH 31, 1996
____________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
_______ _______ _______ _______ _______ ____________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 9.30 $ 9.22 $ 9.40 $ 9.98 $ 8.98 $ 9.21
_______ _______ _______ _______ _______ ________
INVESTMENT OPERATIONS:
Investment income-net................. .65 .60 .62 .56 .52 .26
Net realized and unrealized gain (loss)
on investments...................... (.07) .18 .56 (.98) .30 .09
_______ _______ _______ _______ _______ ________
TOTAL FROM INVESTMENT OPERATIONS.. .58 .78 1.18 (.42) .82 .35
_______ _______ _______ _______ _______ ________
DISTRIBUTIONS:
Dividends from investment income-net.. (.63) (.60) (.60) (.58) (.54) (.25)
Dividends from net realized gain
on investments...................... (.03) - - - (.05) -
_______ _______ _______ _______ _______ ________
TOTAL DISTRIBUTIONS................. (.66) (.60) (.60) (.58) (.59) (.25)
_______ _______ _______ _______ _______ ________
Net asset value, end of period........ $ 9.22 $ 9.40 $ 9.98 $ 8.98 $ 9.21 $ 9.31
========= ======== ======== ======== ======== ========
Market Value, end of period........... $ 9 7\8 $ 9 3\8 $ 10 1\8 $ 8 1\8 $ 8 3\16 $ 8 1\4
========= ======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN(1)................ 12.92% 1.23% 14.84% (14.64%) 8.12% 7.54%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.04% 1.11% 1.06% 1.02% 1.06% 1.08%(2)
Ratio of net investment income to
average net assets.................. 6.96% 6.48% 6.45% 6.01% 5.95% 5.42%(2)
Portfolio Turnover Rate............... 15.43% 27.77% 15.54% 33.65% 13.80% -
Net Assets, end of period (000's Omitted) $40,661 $41,726 $44,658 $40,441 $41,452 $41,928
(1) Calculated based on market value.
(2) Annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus California Municipal Income, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
closed-end management investment company. The Fund's investment objective is
to maximize current income exempt from Federal and California personal income
taxes to the extent consistent with the preservation of capital. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.
(A) PORTFOLIO VALUATION: Investments in municipal debt securities
(excluding options and financial futures on municipal and U.S. treasury
securities) are valued on the last business day of each week and month by an
independent pricing service ("Service") approved by the Board of Directors.
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 the last business
day of each week and month. Investments not listed on an exchange or the
national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain, if any, are declared and paid at
least annually. 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.
For shareholders who elect to receive their distributions in additional
shares of the Fund, in lieu of cash, such distributions will be reinvested at
the lower of the market price or net asset value per share (but not less than
95% of the market price) based on the record date's respective prices. If the
net asset value per share on the record date is lower than the market price
per share, shares will be issued by the Fund at the record date's net asset
value on the payable date of the distribution. If the net asset value per
share is less than 95% of market value, shares will be issued by the Fund at
95% of market value. If the
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
market price is lower than the net asset value per share on the record date,
Mellon Bank, N.A. will purchase Fund shares in the open market commencing on
the payable date and reinvest those shares accordingly. As a result of
purchasing Fund shares in the open market, Fund shares outstanding will not
be affected by this form of reinvestment.
On March 27, 1996, the Board of Directors declared a cash dividend of
$.041 per share from investment income-net, payable on April 25, 1996 to
shareholders of record as of the close of business on April 11, 1996.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .70 of 1% of the value
of the Fund's average weekly net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, interest on borrowings, brokerage and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Fund for any full fiscal year. There was no expense
reimbursement for the six months ended March 31, 1996.
(B) The Fund compensates Mellon Bank, N.A., an affiliate of the Manager,
under a transfer agency agreement for providing personnel and facilities to
perform transfer agency services for the Fund. Such compensation amounted to
$11,680 for the six months ended March 31, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund 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 3-SECURITIES TRANSACTIONS:
The aggregate amount of sales of investment securities, excluding
short-term securities, during the six months ended March 31, 1996 amounted to
$15,000.
At March 31, 1996, accumulated net unrealized appreciation on investments
was $928,804, consisting of $2,032,136 gross unrealized appreciation and
$1,103,332 gross unrealized depreciation.
At March 31, 1996, 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 CALIFORNIA MUNICIPAL INCOME, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus California Municipal Income, Inc., including the statement of
investments, as of March 31, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended March 31, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
September 30, 1995 and financial highlights for each of five years in the
period ended September 30, 1995 and in our report dated November 1, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
May 1, 1996
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
PROXY RESULTS (UNAUDITED)
During the fiscal year ended September 30, 1995, stockholders voted on
the following proposals presented at the annual stockholders' meeting held on
August 18, 1995. The description of each proposal and the number of shares
voted are as follows:
<TABLE>
<CAPTION>
FOR AUTHORITY WITHHELD
_______ _____________________
<S> <C> <C>
1 TO ELECT THREE CLASS II AND ONE CLASS III DIRECTORS:*
CLASS II
Whitney I. Gerard................................... 3,279,785 88,186
Robert R. Glauber................................... 3,279,996 87,975
Arthur A. Hartman................................... 3,279,985 87,986
CLASS III
Joseph S. DiMartino................................. 3,281,554 86,417
</TABLE>
<TABLE>
<CAPTION>
FOR AGAINST ABSTAINED
_______ ________ _________
<S> <C> <C> <C>
2 TO RATIFY THE SELECTION OF ERNST & YOUNG LLP
AS INDEPENDENT AUDITORS OF THE FUND....................... 3,250,610 33,521 83,840
</TABLE>
* The terms of these Class II and Class III Directors expire in 1998 and
1996, respectively. Lucy Wilson Benson, David W. Burke and Martin D. Fife are
Class I Directors whose terms expire in 1997, and George L. Perry and Paul
Wolfowitz are also Class III Directors whose terms expire in 1996.
OFFICERS AND DIRECTORS
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
200 Park Avenue
New York, NY 10166
DIRECTORS
Joseph S. DiMartino, Chairman
Lucy Wilson Benson
David W. Burke
Martin D. Fife
Whitney I. Gerard
Robert R. Glauber
Arthur A. Hartman
George L. Perry
Paul Wolfowitz
OFFICERS
President and Treasurer
Marie E. Connolly
Vice President and Secretary
John E. Pelletier
Vice President and Assistant Treasurer
Frederick C. Dey
Vice President and Assistant Secretary
Eric B. Fischman
Vice President and Assistant Secretary
Elizabeth Bachman
Assistant Treasurer
John J. Pyburn
Assistant Treasurer
Joseph F. Tower, III
Assistant Secretary
Margaret M. Pardo
PORTFOLIO MANAGERS
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
L. Lawrence Troutman
Samuel J. Weinstock
Monica S. Wieboldt
INVESTMENT ADVISER
The Dreyfus Corporation
CUSTODIAN
The Bank of New York
COUNSEL
Stroock & Stroock & Lavan
TRANSFER AGENT,
DIVIDEND DISTRIBUTION AGENT
AND REGISTRAR
Mellon Bank, N.A.
STOCK EXCHANGE LISTING
AMEX Symbol: DCM
INITIAL SEC EFFECTIVE DATE
10/21/88
The Net Asset Value appears in the following publications: Barron's,
Closed-End Bond Funds section under the heading "Municipal Bond Funds" every
Monday; Wall Street Journal, Mutual Funds section under the heading
"Closed-End Bond Funds" every Monday; New York Times,
Money and Business Section under the heading "Closed-End Bond Funds-Single
State Municipal Bond Funds" every Sunday.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its
common stock in the open market when it can do so at prices below the then
current net asset value per share.
[Dreufus lion "d" logo]
DREYFUS CALIFORNIA MUNICIPAL INCOME, INC.
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 DISTRIBUTION AGENT
AND REGISTRAR
Mellon Bank, N.A.
85 Challenger Road
Ridgefield Park, NJ 07660
Printed in U.S.A. 857SA963
[Dreyfus logo]
California
Municipal
Income, Inc.
Semi-Annual
Report
March 31, 1996
