DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Letter to Shareholders
Dear Shareholder:
We are pleased to report the performance for the Dreyfus Pennsylvania
Municipal Money Market Fund for its six-month reporting period ended March
31, 1997. Your Fund produced an annualized yield of 2.88% and, after taking
into account the effect of compounding, an annualized effective yield of
2.92%.*
THE ECONOMY
The economy continued to gain momentum during the past several months,
with virtually every new economic report containing fresh evidence of robust
growth. Overall, the Commerce Department pegged real economic growth at 3.8
percent for the October through December period. Housing showed particular
strength, as home resales jumped a full 9 percent during February and sales
of new homes surpassed an 800,000 annual rate for two consecutive months _
January and February _ for the first time in more than a decade. Sales of
manufactured goods also quickened, as new orders for factory durables and
consumer confidence improved. Meanwhile, the number of people receiving
jobless benefits plunged in March.
Against this steady economic advance, rates rose on two fronts. The
Federal Reserve Board took action at its March 25 meeting, raising the
Federal Funds rate by 25 basis points. Many analysts and financial market
participants interpreted this preemptive strike against inflation as just the
first, anticipating another interest-rate increase at the Fed's May meeting.
However, despite lower unemployment and increased help wanted advertising,
higher inflation is not yet evident. Still, advance indicators of inflation
are rising and market participants and Fed policymakers remain alert for any
sign that inflation is trending upward. Meanwhile, short-term rates continued
to move up gradually in the money markets over the period. The market widely
anticipated the Fed's move in March, and has already begun adjusting prices
in anticipation of the next rate increase.
For the current fiscal year 1997-98, Pennsylvania lawmakers are deciding
earlier than usual how to spend the larger than expected budget surplus. The
Commonwealth's proposed budget calls for no new taxes, while spending
priorities and income tax reduction will be aimed toward Pennsylvania's
poorer areas. A recent Dun & Bradstreet study showed that Pennsylvania is
losing companies and jobs, so portions of the budget will focus on recovery
of old industrial sites and job creation. (The Pennsylvania unemployment rate
remains below the national average, but is climbing).
MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
The economic picture is an important component of our portfolio
strategy. Market expectations can also affect the short-term municipal
market, however, as was the case in this most recent period. For example, the
anticipation of Federal Reserve activity prior to the Presidential election
this past November left the market jittery, while the lack of Fed action in
the weeks following the election helped settle the market into a trading
range. Various other influences which affect the municipal market (most
specifically supply and demand) can lead us to adjust our strategy, and that
could result in a portfolio structure and/or average maturity which may not
appear to coincide exactly with interest rate moves, economic conditions, or
forecasts. In this way, one might have expected that your Fund's average
maturity, during this most recent period, would be relatively short in
expectation of higher rates. However, we were comfortable extending
maturities beyond 55 days and locking in attractive rates as 1996 drew to a
close, due to the expectation of limited availability of high quality
Pennsylvania-exempt municipal note issues in early 1997. This strategy served
us well when rates dropped significantly (albeit temporarily) in January, and
also left flexibility to extend further should conditions warrant and
opportunities arise.
In the coming months, we expect additional technical market situations to
occur, such as increased redemptions in April due to income tax payments and
the maturing of significant note issues in June, and clearly we would adjust
the
Fund's composition to respond to such situations. We will continue to commit
to those issues which meet our high quality investment guidelines and which
provide the appropriate level of liquidity for your Fund's needs.
Additionally, we will continue to monitor those conditions which affect our
marketplace and adjust our investment strategy where necessary to pursue
competitive returns.
Included in this report are detailed statements about your Fund's
holdings and its financial condition. We hope you find them informative.
Please know that we greatly appreciate 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 21, 1997
New York, N.Y.
*Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Statement of Investments March 31, 1997 (Unaudited)
Principal
Tax Exempt Investments_100.0% Amount Value
______________ ____________
<S> <C> <C>
Pennsylvania_95.0%
Allegheny County Hospital Development Authority, VRDN (Saint Francis Medical Center)
3.60%, Series A (LOC; First National Bank of Chicago) (a,b)............... $ 5,000,000 $ 5,000,000
Allegheny County Port Authority, GAN 3.90%, Series A, 6/30/97 (LOC; PNC Bank) (a) 3,000,000 3,000,000
Bucks County Industrial Development Authority, IDR, VRDN (Oxford Falls Project)
3.55% (Corp. Guaranty; Household Finance Corp.) (b)....................... 900,000 900,000
Butler County Industrial Development Authority, Revenue (Lutheran Welfare)
4.25%, Series A, 11/3/97 (LOC; PNC Bank) (a).............................. 4,000,000 4,013,790
Carbon County Industrial Development Authority, RRR, CP (Panther Creek Partners):
3.45%, Series A, 5/21/97 (LOC; National Westminster Bank) (a)............. 3,350,000 3,350,000
3.50%, Series A, 7/24/97 (LOC; National Westminster Bank) (a)............. 2,620,000 2,620,000
Columbia County Industrial Development Authority, IDR, VRDN (Kleerdex Co. Project)
4% (LOC; Bank of Tokyo-Mitsubishi) (a,b).................................. 1,000,000 1,000,000
Delaware County Authority, HR, VRDN (Medical Center)
3.55% (LOC; Norwest Bank of Minnesota) (a,b).............................. 3,900,000 3,900,000
Delaware County Industrial Development Authority, RRR, Refunding
3.625%, Series C, 12/1/97 (LOC; General Electric Capital) (a)............. 4,000,000 4,000,000
Delaware Valley Regional Finance Authority, VRDN
3.50%, Series D (LOC; Marine Midland Bank) (a,b).......................... 3,000,000 3,000,000
Emmaus General Authority, Revenue, VRDN:
3.55%, Series F-7 (LOC; Marine Midland Bank) (a,b)........................ 3,000,000 3,000,000
3.55%, Series G-5 (LOC; Marine Midland Bank) (a,b)........................ 3,800,000 3,800,000
3.65% (Liquidity Facility; Credit Suisse and LOC; FSA) (a,b).............. 5,000,000 5,000,000
Erie County Industrial Development Authority, Revenue, VRDN
(McInnes Steel Co. Project) 3.80% (LOC; Huntington National Bank) (a,b)... 1,100,000 1,100,000
Lehigh County Industrial Development Authority, Industrial and Commercial
Development Revenue, VRDN (Radnor/Lehigh Corp. Project)
3.525% (LOC; Dresdner Bank) (a,b)......................................... 8,175,000 8,175,000
Northeastern Hospital Authority, HR, CP (Hospital Central Services Capital Asset)
3.45%, Series B, 5/8/97 (Liquidity Facility; PNC Bank and LOC; MBIA) (a,b) 2,000,000 2,000,000
State of Pennsylvania:
CP 3.40%, 5/20/97 (LOC; Bayerische Landesbank) (a)........................ 5,000,000 5,000,000
TAN 4.50%, 6/30/97........................................................ 5,000,000 5,009,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN:
3.50%, Series C (LOC; Student Loan Marketing Association) (a,b)........... 4,200,000 4,200,000
3.50%, Series B (LOC; Student Loan Marketing Association) (a,b)........... 4,500,000 4,500,000
Pennsylvania Higher Educational Facilities Authority,
College and University Revenues, Refunding, VRDN (College of Optometry)
3.40% (LOC; First Union National Bank of North Carolina) (a,b)............ 3,790,000 3,790,000
City of Philadelphia:
CP 3.55%, 4/9/97 (LOC; Fuji Bank) (a)..................................... 4,800,000 4,800,000
TRAN 4.50%, Series A, 6/30/97............................................. 2,500,000 2,503,257
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Statement of Investments (continued) March 31, 1997 (Unaudited)
Principal
Tax Exempt Investments (continued) Amount Value
____________ ____________
Pennsylvania (continued)
Philadelphia Redevelopment Authority, Redevelopment Notes (Southwark Plaza Project)
3.85%, 12/30/97 (Insured; FGIC)........................................... $ 6,000,000 $ 6,000,000
Philadelphia School District, TRAN 4.50%, 6/30/97........................... 5,000,000 5,005,935
Schuylkill County Industrial Development Authority, VRDN:
Revenue (Pine Grove Landfill Inc.) 3.85%, Series B (LOC; Meridian BankCorp) (a,b) 8,000,000 8,000,000
RRR (Northeastern Power Co.) 3.75% (LOC; Sumitomo Bank) (a,b)............. 2,000,000 2,000,000
Sewickley Valley Hospital Authority, Revenue, Refunding (Sewickley Valley
Hospital)
3.55%, Series B, 12/15/97................................................. 2,700,000 2,700,000
Temple University of the Commonwealth System of Higher Education 4.625%, 5/20/97 6,000,000 6,006,987
Venango Industrial Development Authority, RRR, Refunding, CP (Scrubgrass
Project)
3.45%, Series A, 5/15/97 (LOC; National Westminster Bank) (a)............. 2,700,000 2,700,000
Washington County Authority, LR, VRDN (Higher Education Pooled Equipment
Lease)
3.45%, Series A (LOC; First Union National Bank of North Carolina) (a,b).. 3,900,000 3,900,000
York General Authority, Pooled Finance Revenue, VRDN
3.50% (LOC; First Union National Bank of North Carolina) (a,b)............ 6,000,000 6,000,000
U.S. Related_5.0%
Commonwealth of Puerto Rico Government Development Bank, CP:
3.20%, 5/14/97............................................................ 3,000,000 3,000,000
3.45%, 5/12/97............................................................ 3,565,000 3,565,000
_____________
TOTAL INVESTMENTS (cost $132,538,969)....................................... $132,538,969
=============
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DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Summary of Abbreviations
<S> <C> <S> <C>
CP Commercial Paper LR Lease Revenue
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FSA Financial Security Assurance Insurance Corporation
GAN Grant Anticipation Notes RRR Resources Recovery Revenue
HR Hospital Revenue TAN Tax Anticipation Notes
IDR Industrial Development Revenue TRAN Tax and Revenue Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
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Summary of Combined Ratings (Unaudited)
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
____ __________ __________________ ___________________
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 90.9%
AAA/AA (e) Aaa/Aa (e) AAA/AA (e) 9.1
________
100.0%
=========
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Notes to Statement of Investments:
(a) Secured by letters of credit. At March 31, 1997, 70.8% of the Fund's
net assets are backed by letters of credit issued by domestic banks,
foreign banks, corporations and government agencies.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) P1 and A1 are the highest ratings assigned tax exempt commercial
paper by Moody's and Standard & Poor's, respectively.
(e) Notes which are not F, MIG or SP rated are represented by bond
ratings of the issuers.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Statement of Assets and Liabilities March 31, 1997 (Unaudited)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $132,538,969 $132,538,969
Cash....................................... 4,634,442
Interest receivable........................ 1,212,354
Prepaid expenses........................... 2,218
_____________
138,387,983
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 61,091
Accrued expenses........................... 32,488
_____________
93,579
_____________
NET ASSETS.................................................................. $138,294,404
==============
REPRESENTED BY: Paid-in capital............................ $138,315,909
Accumulated net realized gain (loss) on investments (21,505)
_____________
NET ASSETS.................................................................. $138,294,404
==============
SHARES OUTSTANDING
(UNLIMITED NUMBER OF $.001 PAR VALUE SHARES OF BENEFICIAL INTEREST
AUTHORIZED) ........................................... 138,315,909
NET ASSET VALUE, offering and redemption price per share.................... $1.00
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Statement of Operations Six Months Ended March 31, 1997 (Unaudited)
INVESTMENT INCOME
INCOME Interest Income............................ $2,544,200
EXPENSES: Management fee_Note 2(a)................... $359,656
Shareholder servicing costs_Note 2(b)...... 60,586
Professional fees.......................... 16,903
Custodian fees............................. 10,793
Registration fees.......................... 7,784
Trustees' fees and expenses_Note 2(c)...... 4,552
Prospectus and shareholders' reports....... 4,387
Miscellaneous.............................. 6,608
___________
Total Expenses......................... 471,269
__________
INVESTMENT INCOME_NET, representing net increase in net assets
resulting from operations............................................... $2,072,931
===========
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Statement of Changes in Net Assets
Six Months Ended
March 31, 1997 Year Ended
(Unaudited) September 30, 1996
__________________ ___________________
<S> <C> <C>
OPERATIONS:
Investment income_net.............................................. $ 2,072,931 $ 4,462,075
Net realized gain (loss) on investments............................ __ 107
Net unrealized appreciation (depreciation) on investments.......... __ (115)
__________________ ___________________
Net Increase (Decrease) in Net Assets Resulting from Operations.. 2,072,931 4,462,067
__________________ ___________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.............................................. (2,072,931) (4,462,075)
__________________ ___________________
BENEFICIAL INTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold...................................... 140,547,621 342,462,567
Dividends reinvested............................................... 1,980,613 4,189,968
Cost of shares redeemed............................................ (156,151,872) (337,465,853)
__________________ ___________________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (13,623,638) 9,186,682
__________________ ___________________
Total Increase (Decrease) in Net Assets........................ (13,623,638) 9,186,674
NET ASSETS:
Beginning of Period................................................ 151,918,042 142,731,368
__________________ ___________________
End of Period...................................................... $ 138,294,404 $ 151,918,042
================ ====================
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
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.
Six Months Ended
March 31, 1997 Year Ended September 30,
________________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
_____________ ________ ________ _______ ________ ________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_________ ________ ________ _______ ________ ________
Investment Operations:
Investment income_net................. .014 .030 .034 .025 .024 .034
_________ ________ ________ _______ ________ ________
Distributions:
Dividends from investment income_net.. (.014) (.030) (.034) (.025) (.024) (.034)
_________ ________ ________ _______ ________ ________
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ======== ======= ======== ========
TOTAL INVESTMENT RETURN................... 2.89%* 3.04% 3.50% 2.54% 2.45% 3.45%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .66%* .68% .42% .20% .28% .20%
Ratio of net investment income
to average net assets............... 2.88%* 3.00% 3.45% 2.51% 2.41% 3.39%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. ._ .01% .27% .47% .45% .55%
Net Assets, end of period (000's Omitted) $138,294 $151,918 $142,731 $140,723 $135,096 $118,634
*Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Pennsylvania Municipal Money Market Fund (the "Fund") is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company. The Fund's investment
objective is to provide investors with as high a level of current income
exempt from Federal and Pennsylvania income taxes as is consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services,
Inc. is the distributor of the Fund's shares, which are sold to the public
without a sales charge.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value per share of $1.00.
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 are valued at amortized cost, which
has been determined by the Fund's Board of Trustees to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date 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. Realized
gain and loss from securities transactions are recorded on the identified
cost basis. Cost of investments represents amortized cost.
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. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
The Fund has an unused capital loss carryover of approximately $21,500
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to September 30, 1996. If not
applied, $100 of the carryover expires in fiscal 2000, $3,600 expires in
fiscal 2003 and $17,800 expires in fiscal 2004.
At March 31, 1997, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 2_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 .50 of 1% of the value of the Fund's
average daily net assets and is payable monthly.
(B) Under the Shareholder Services Plan, the Fund reimburses Dreyfus
Service Corporation, a wholly-owned subsidiary of the Manager, an amount not
to exceed an annual rate of .25 of 1% of the value of the Fund's average
daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. 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.
During the period ended March 31, 1997, the Fund was charged an aggregate of
$20,411 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. Such
compensation amounted to $30,063 during the period ended March 31, 1997.
(C) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,000. The Chairman of the Board
receives an additional 25% of such compensation.
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS PENNSYLVANIA
MUNICIPAL MONEY MARKET FUND
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. 104SA973
[Dreyfus logo]
Registration Mark
Pennsylvania
Municipal Money
Market Fund
Semi-Annual
Report
March 31, 1997
