Dreyfus PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus Pennsylvania
Municipal Money Market Fund for the six-month period ended March 31, 1998.
Your Fund produced an annualized yield of 2.98% and, after taking into
account the effect of compounding, the annualized effective yield was 3.03%.*
THE ECONOMY
Defying concerns that the Asian financial crisis would depress U.S.
economic growth, the economy has remained quite firm in recent months. The
Federal Reserve Board's Beige Book survey of regional economic conditions,
published March 18, found that despite a decline in export sales to Asia, the
U.S. economy is thriving in all regions. The Fed report cited specific
strength in rising industrial activity, good retail sales, and strong demand
for labor. El Nino has added at least one boost to the economy through
plunging oil prices and warm weather that has stimulated some spring
spending, especially on housing and related items. Housing starts rose 6%
during February. Indeed, consumers appear to be in good shape, with the
Conference Board reporting that its index of consumer confidence rose to
138.3 in February, from a revised 128.3 in January. The February figure was
the highest since October 1968. The latest figures on real Gross Domestic
Product (GDP) growth show a 3.9% annual rate during 1997, and analysts
estimated first-quarter 1998 GDP growth to be running at 3.5% or more.
In fact, it appears that the Asian crisis may have actually stimulated
growth by reducing inflation expectations and lowering long-term interest
rates. The Fed Beige Book survey noted that inflation seems "eerily calm."
The Consumer Price Index for February rose only .1%, held down by falling oil
prices. The inflation rate for 1997 was just 1.4%. With inflation staying so
low, the Fed has had no reason to raise interest rates during the recent
reporting period, although a surging economy might otherwise have dictated
some tightening action. In the money market, interest rates on short-term
securities remained virtually unchanged during the month of March. Market
participants appear to be in a wait-and-see mode, as reduced Treasury
borrowing needs continue to reduce the supply of money market securities
while demand remains steady.
MARKET ENVIRONMENT/PORTFOLIO
While the Fed has remained quiet over the past six months, market
technicals (i.e., supply/demand) have played a major role in our overall
investment strategy. By early fall 1997, the market had fully absorbed the
substantial number of financings that had been issued over the summer months.
Soon after, note yields settled into a trading range which remained
relatively unchanged until the latter part of the year. In late December, the
short-term municipal market experienced a sharp, albeit temporary, rise in
short-term rates as a result of corporate seasonal "window dressing." Dealers
priced securities at attractive levels in order to minimize their
inventories, which helped to boost your Fund's yield. The situation reversed
in January as assets flowed back into the tax-exempt money funds, thereby
putting downward pressure on rates. During this period, yields on tax-exempt
money market funds fluctuated in response to these supply and demand
imbalances.
By mid-January, the market stabilized and normal trading patterns, for
the most part, returned. While high-quality Pennsylvania issues continued to
be in short supply, we continued to seek attractive buying opportunities to
extend your Fund's average maturity as tax season approached. The short-term
municipal market typically experiences redemptions as a result of tax payment
needs. This, in turn, can place temporary upward pressure on yields as demand
lessens. To the extent that Pennsylvania-exempt paper becomes available, we
will look for attractive buying opportunites, and of course, all new
investments will continue to meet our high credit-quality standards, and
provide a significant level of liquidity, commensurate with the needs of the
Fund.
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 greatly appreciate your continued confidence in this 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 17, 1998
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<TABLE>
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS MARCH 31, 1998
Principal
Tax Exempt Investments-100.0% Amount Value
_____________ _____________
<S> <C> <C>
Pennsylvania-92.9%
Allegheny County Hospital Development Authority, Revenue, VRDN
(Saint Francis Medical Center)
3.80%, Series A (LOC; First National Bank of Chicago) (a,b)............. $ 5,000,000 $ 5,000,000
Allegheny County Port Authority, GAN
3.85%, Series A, 6/30/98 (LOC; PNCBank) (a)............................. 3,000,000 3,000,000
Beaver County Industrial Development Authority, PCR, Refunding, VRDN
(Atlantic Richfield Project) 3.65% (LOC; Atlantic Richfield Co.) (a,b).. 3,650,000 3,650,000
Bucks County Industrial Development Authority, IDR, VRDN (Oxford Falls
Project)
3.70% (Corp. Guaranty; Household Finance Corp.) (b)..................... 900,000 900,000
Butler County Industrial Development Authority, Revenue (Lutheran Welfare)
3.80%, Series A, 11/1/98 (LOC; PNC Bank) (a)............................ 7,260,000 7,260,000
Carbon County Industrial Development Authority, RRR, CP (Panther CreekPartners)
3.50%, Series A, 5/14/98 (LOC; National Westminster Bank) (a)........... 2,000,000 2,000,000
Columbia County Industrial Development Authority, IDR, VRDN (Kleerdex Co.
Project)
4.25% (LOC: Bank of Tokyo-Mitsubishi and Sanwa Bank) (a,b).............. 1,700,000 1,700,000
Delaware County Industrial Development Authority, PCR, Refunding, CP
(Philadelphia Electric):
3.40%, Series C, 5/14/98 (Insured; FGIC and Liquidity Facility; FGIC). 5,000,000 5,000,000
3.60%, Series C, 5/14/98 (Insured; FGIC and Liquidity Facility; FGIC). 5,000,000 5,000,000
Doylestown Hospital Authority, HR, VRDN (Doylestown)
3.25%, Series B (Insured; AMBAC and Liquidity Facility; PNC Bank) (b)... 5,500,000 5,500,000
Emmaus General Authority, Revenue, VRDN
3.30%, Series F-5 (GIC; Goldman Sachs and Co.) (b)...................... 3,000,000 3,000,000
Erie County Industrial Development Authority, Revenue, VRDN
(McInnes Steel Co. Project) 3.85% (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)
3.775% (LOC; Dresdner Bank) (a,b)....................................... 8,065,000 8,065,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN
3.80%, Series B (LOC; Student Loan Marketing Association) (a,b)......... 4,500,000 4,500,000
Pennsylvania Higher Educational Facilities Authority, CICUFinancing Program
Revenue
(Saint Francis College)
4.50%, Series B-7, 11/1/98 (LOC; Allied Irish Banks) (a).............. 3,000,000 3,010,632
State of Pennsylvania, TRAN
4.50%, 6/30/98.......................................................... 5,000,000 5,008,666
Philadelphia, TRAN 4.50%, Series A, 6/30/98................................. 11,000,000 11,019,323
Philadelphia Redevelopment Authority, VRDN(Southwark Plaza Project)
3.80%, Series A (LOC; PNCBank) (a,b).................................... 4,000,000 4,000,000
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1998
Principal
Tax Exempt Investments (continued) Amount Value
_____________ _____________
Pennsylvania (continued)
Schuylkill County Industrial Development Authority, VRDN:
Revenue (Pine Grove Landfill Inc.)
3.95% (LOC; Bank of Boston) (a,b)..................................... $ 6,700,000 $ 6,700,000
RRR, Refunding (Northeastern Power Co.)
3.85%, Series B (LOC; Credit Locale de France) (a,b).................. 2,100,000 2,100,000
Temple University of the Commonwealth System of Higher Education
(University Funding Obligation) 4.75%, 5/18/98.......................... 4,000,000 4,004,209
Venango Industrial Development Authority, RRR, CP (Scrubgrass Project):
3.70%, 5/11/98 (LOC; National Westminster Bank) (a)..................... 2,700,000 2,700,000
3.50%, 7/10/98 (LOC; National Westminster Bank) (a)..................... 3,900,000 3,900,000
Washington County Authority, LR, VRDN (Higher Education Pooled Equipment Lease)
3.75%, Series A (LOC; First Union National Bank of North Carolina) (a,b) 5,595,000 5,595,000
York General Authority, Pooled Finance Revenue, VRDN
3.80% (LOC; First Union National Bank of North Carolina) (a,b).......... 4,000,000 4,000,000
U.S. Related-7.1%
Commonwealth of Puerto Rico Government Development Bank, CP
3.40%, 7/14/98.......................................................... 5,294,000 5,294,000
Commonwealth of Puerto Rico Highway and Transportation Authority,
Transportation Revenue, VRDN
3.20%, Series A (Insured; AMBAC and Liquidity Facility; Bank of Nova Scotia) (b) 3,000,000 3,000,000
_____________
TOTAL INVESTMENTS (cost $116,006,830)....................................... $116,006,830
=============
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
CP Commercial Paper LR Lease Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
GAN Grant Anticipation Notes RRR Resources Recovery Revenue
GIC Guaranteed Investment Contract TRAN Tax and Revenue Anticipation Notes
HR Housing Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
Summary of Combined Ratings (Unaudited)
Moody's or Standard & Poor's Percentage of Value
_______ ________________ _________________
VMIG1/MIG1, P1 (c) SP1+/SP1, A1+/A1 (c) 85.6%
VMIG2/MIG2, P2 SP2/A2 1.4
Aaa/Aa (d) AAA/AA (d) 9.6
Not Rated (e) Not Rated (e) 3.4
_______
100.0%
=======
Notes to Statement of Investments:
(a) Secured by letters of credit. At March 31, 1998, 57.8% of the Fund's net
assets are backed by letters of credit issued by domestic banks, foreign
banks and corporations, of which PNCBank provided letters of credit to
12.1% of the Fund's net assets.
(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) P1 and A1 are the highest ratings assigned tax exempt commercial paper by
Moody's and Standard &Poor's, respectively.
(d) Notes which are not MIG or SP rated are represented by bond ratings of
the issuers.
(e) Securities which, while not rated by Moody's and Standard & Poor's have
been determined by the Manager to be of comparable quality to those rated
securities in which the fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998 (UNAUDITED)
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $116,006,830 $116,006,830
Cash....................................... 1,060,215
Interest receivable........................ 1,143,825
_____________
118,210,870
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 62,912
Accrued expenses........................... 39,203
_____________
102,115
_____________
NET ASSETS.................................................................. $118,108,755
=============
REPRESENTED BY: Paid-in capital............................ $118,132,804
Accumulated net realized gain (loss) on investments (24,049)
_____________
NET ASSETS.................................................................. $118,108,755
=============
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 118,132,804
NET ASSET VALUE, offering and redemption price per share.................... $1.00
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income...................... $2,330,501
EXPENSES: Management fee-Note 2(a)............. $ 323,170
Professional fees.................... 26,588
Shareholder servicing costs-Note 2(b) 22,544
Registration fees.................... 7,823
Custodian fees....................... 7,231
Prospectus and shareholders' reports. 5,784
Trustees' fees and expenses-Note 2(c) 4,499
Miscellaneous........................ 2,546
___________
Total Expenses................... 400,185
___________
INVESTMENT INCOME-NET, representing net increase in net assets
resulting from operations............................................. $1,930,316
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS PENNSYLVANIA MUNICIPAL MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
March 31, 1998 Year Ended
(Unaudited) September 30, 1997
__________ __________________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 1,930,316 $ 4,103,592
Net realized gain (loss) on investments............................. -- (2,544)
______________ ______________
Net Increase (Decrease) in Net Assets Resulting from Operations... 1,930,316 4,101,048
______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................... (1,930,316) (4,103,592)
______________ ______________
BENEFICIALINTEREST TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold....................................... 114,361,560 289,225,274
Dividends reinvested................................................ 1,840,131 3,919,938
Cost of shares redeemed............................................. (129,143,932) (314,009,714)
______________ ______________
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (12,942,241) (20,864,502)
______________ ______________
Total Increase (Decrease) in Net Assets......................... (12,942,241) (20,867,046)
NET ASSETS:
Beginning of Period................................................. 131,050,996 151,918,042
______________ ______________
End of Period....................................................... $ 118,108,755 $ 131,050,996
============== ==============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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, 1998 Year Ended September 30,
_____________________________________________
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
__________ ______ ______ ______ ______ ______
<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................. .015 .030 .030 .034 .025 .024
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income-net.. (.015) (.030) (.030) (.034) (.025) (.024)
______ ______ ______ ______ ______ ______
Net asset value, end of period........ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 3.01% * 3.03% 3.04% 3.50% 2.54% 2.45%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .62% * .66% .68% .42% .20% .28%
Ratio of net investment income
to average net assets............... 2.99%* 2.99% 3.00% 3.45% 2.51% 2.41%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. -- -- .01% .27% .47% .45%
Net Assets, end of period (000's Omitted) $118,109 $131,051 $151,918 $142,731 $140,723 $135,096
* Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
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 in securities 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, if any, 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, 1997. The
carryover does not include net realized securities losses from November 1,
1996 through September 30, 1997 which are treated, for Federal income tax
purposes, as arising in fiscal 1998. 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, 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 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, 1998, the Fund was charged $25,548 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 March 31, 1998, the Fund was charged $32,495 pursuant to the
transfer agency agreement.
(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.
Registration Mark
[Dreyfus lion "d" logo]
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. 104SA983
Registration Mark
[Dreyfus logo]
Pennsylvania
Municipal Money
Market Fund
Semi-Annual
Report
March 31, 1998
