DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus BASIC New Jersey
Municipal Money Market Portfolio for its semi-annual reporting period ended
February 28, 1997. Your Fund produced an annualized yield of 3.14% and after
taking into account the effect of compounding, the annualized effective yield
was 3.19%.*
ECONOMIC AND MARKET ENVIRONMENT
While new data suggests a sharp deceleration in first-quarter growth to
approximately 2.5%, following a very vigorous fourth-quarter 1996 rate of
4.7%, the U.S. economy still appears to be growing solidly. Consumer spending
remains buoyant, while businesses continue to build industrial capacity.
Nonetheless, winter economic data are highly volatile and subject to the
vagaries of weather and holiday activity. Thus, observers seeking an accurate
picture of the economy's forward momentum must await additional evidence
before ascribing a trend.
Core inflation actually fell during 1996; apparently, robust economic
growth has not yet produced inflation. Still, Federal Reserve Board Chairman
Alan Greenspan warned the markets in December and again in February that
inflation may yet resurge. Mr. Greenspan commented that the Fed might hike
interest rates in a preemptive strike against inflation. Indeed, recent signs
of firming commodity prices and tightening labor markets may already be
flashing an inflation warning. The possibility of a tightening as early as
the March 25 Federal Open Market Committee (FOMC) meeting has money market
participants watchful and wary. While the market exhibited some strength
early in February amid benign economic news and Fed inaction, following Mr.
Greenspan's cautionary words, rates trended higher to conclude the month
basically unchanged.
New Jersey's economy grew at a moderate rate. Job growth increased while
the State unemployment rate continued to drop. The State's industry sectors
grew rapidly and health care, retailing, distribution, and business services
were the leading contributors to employment growth. In addition, significant
State tax cuts were recently signed into law.
MARKET ENVIRONMENT/PORTFOLIO
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. 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/demand) can lead us to adjust our strategy, and result in a portfolio
structure and/or average maturity which may not appear to coincide exactly
with interest rate moves, economic conditions, or forecasts. For example,
during this period, one might have expected that your Fund's average maturity
would be relatively short in expectation of higher rates. However, we were
comfortable extending maturities beyond 50 days and locking in attractive
rates as 1996 drew to a close, due to the expectation of limited availability
of high quality 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 opportun
ities arise.
In the coming months, we expect additional technical market situations to
occur such as increased redemptions due to tax payments during April, and the
maturation of significant note issues in June. As a result of these
anticipated market events, we expect to adjust the Portfolio's composition to
respond to the supply and cash flow changes in an effort to maximize your
Fund's yield. As we endeavor to accomplish this, 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 monitor those conditions which affect our marketplace
and adjust our investment policy where necessary to pursue competitive
returns.
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
March 17, 1997
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF INVESTMENTS FEBRUARY 28, 1997 (UNAUDITED)
Principal
Tax Exempt Investments_100.0% Amount Value
___________ ___________
<C> <C> <C>
New Jersey_90.5%
Atlantic County Improvement Authority, Revenue, VRDN (Pooled Government Loan Program)
3% (LOC; Midland Bank) (a,b)............................................ $ 4,000,000 $ 4,000,000
Burlington County, BAN 4.75%, 4/24/97....................................... 3,000,000 3,002,568
East Brunswick Township, BAN 3.75%, 1/2/98.................................. 3,821,500 3,830,815
Essex County Improvement Authority, Revenue, VRDN
(Pooled Government Loan Program)
3% (LOC; Banco Santander) (a,b)......................................... 4,600,000 4,600,000
Florence Township, BAN 4%, 2/13/98.......................................... 5,000,000 5,011,505
Galloway Township, BAN 4%, Series B, 3/13/97................................ 2,500,000 2,500,317
Hudson County Improvement Authority, VRDN (Essential Purpose Pooled Government)
3.20% (LOC: Comerica Bank and Fuji Bank) (a,b).......................... 4,700,000 4,700,000
Middlesex County, BAN 3.90%, 6/25/97........................................ 2,000,000 2,000,057
Monmouth County Improvement Authority, Revenue, VRDN (Pooled Government Loan Program)
3.10% (LOC; Union Bank of Switzerland) (a,b)............................ 5,000,000 5,000,000
State of New Jersey, CP:
3.35%, 3/25/97 (Liquidity; Union Bank of Switzerland)................... 8,000,000 8,000,000
3.50%, 4/10/97 (Liquidity; Union Bank of Switzerland)................... 2,100,000 2,100,000
New Jersey Economic Development Authority:
Thermal Energy Facilities, Revenue (Thermal Energy Limited Partnership)
3.50%, 4/10/97 (Escrowed in; U.S. Treasury Bills)..................... 3,000,000 3,000,000
VRDN:
EDR (Dow Chemical Co.-El Dorado Terminal):
3.25%, Series 1984A (Corp. Guaranty; Dow Chemical Co.) (a)........ 2,900,000 2,900,000
3.25%, Series 1984B (Corp. Guaranty; Dow Chemical Co.) (a)........ 900,000 900,000
Industrial and EDR (Merck and Co.)
3.55%, Series A and B (a)......................................... 1,700,000 1,700,000
Natural Gas Facilities, Revenue (NUI Corp. Project)
3.35%, Series A (BPA; The Bank of New York and Insured; AMBAC) (a) 3,000,000 3,000,000
Revenue (Cranes Mill Project)
3.25%, Series 97-C (LOC; Bank of Ireland) (a,b)................... 3,500,000 3,500,000
Water Facilities Revenue (United Water Project):
3%, Series A (Insured; AMBAC and SBPA; The Bank of New York) (a).. 3,000,000 3,000,000
3.05%, Series C (Insured; AMBAC and SBPA; The Bank of New York) (a) 2,500,000 2,500,000
New Jersey Health Care Facilities Financing Authority, Revenue, VRDN
(Hospital Capital Asset Financing):
3.10%, Series A (LOC; Chase Manhattan Bank) (a,b)..................... 5,500,000 5,500,000
3.10%, Series D (LOC; Chase Manhattan Bank) (a,b)..................... 6,000,000 6,000,000
New Jersey Sports and Exposition Authority, VRDN (State Contract)
3.10%, Series C (Insured; MBIA and Liquidity; Barclays Bank) (a)........ 5,145,000 5,145,000
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
3.15%, Series D (Insured; FGIC and SBPA; Societe Generale) (a).......... 1,900,000 1,900,000
Dreyfus Basic New Jersey Municipal Money Market Portfolio
Statement of Investments (continued) February 28, 1997 (Unaudited)
Principal
Tax Exempt Investments (continued) Amount Value
___________ ___________
New Jersey (continued)
Passaic County, BAN:
4%, 4/4/97.............................................................. $ 1,666,000 $ 1,666,560
4.25%, Series B, 6/25/97................................................ 2,489,000 2,491,658
4.50%, 9/26/97.......................................................... 1,805,000 1,810,261
Passaic County Utilities Authority, Solid Waste Systems Revenue Project, Notes
3.95%, Series B, 9/3/97 (Insured; MBIA)................................. 1,250,000 1,250,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
(Versatile Structure Obligation):
3.40%, Series 3 (BPA; Morgan Guaranty Trust Co.) (a).................. 12,700,000 12,700,000
3.40%, Series 2 (LOC; Morgan Guaranty Trust Co.) (a,b)................ 1,200,000 1,200,000
Woodbridge Township, BAN 3.96%, 8/1/97...................................... 3,000,000 3,000,240
U.S. Related_9.5%
Commonwealth of Puerto Rico Govermnent Development Bank:
CP 3.40%, 3/19/97....................................................... 2,000,000 2,000,000
Refunding, VRDN 2.95% (LOC; Credit Suisse) (a,b)........................ 2,800,000 2,800,000
TRAN 4%, Series A, 7/30/97.............................................. 3,000,000 3,006,946
Puerto Rico Industrial Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue (Reynolds Metal Co. Project)
3.80%, 9/1/97 (LOC; ABN-Amro Bank) (b).................................. 3,500,000 3,500,852
_____________
TOTAL INVESTMENTS (cost $119,216,779)....................................... $119,216,779
==============
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BAN Bond Anticipation Notes MBIA Municipal Bond Investors Assurance
BPA Bond Purchase Agreement Insurance Corporation
CP Commercial Paper SBPA Standby Bond Purchase Agreement
EDR Economic Development Revenue TRAN Tax and Revenue Anticipation Notes
FGIC Financial Guaranty Insurance Company 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) 80.2%
Not Rated (e) Not Rated (e) Not Rated (e) 19.8
________
100.0%
==========
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Notes to Statement of Investments:
(a) 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.
(b) Secured by letters of credit. At February 28, 1997, 33.5% of the
Fund's net assets are backed by letters of credit issued by domestic banks
and foreign banks.
(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) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
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DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1997 (UNAUDITED)
Cost Value
______________ ______________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $119,216,779 $119,216,779
Cash....................................... 1,614,984
Interest receivable........................ 935,064
Prepaid expenses and other assets.......... 13,240
Due from The Dreyfus Corporation and affiliates 6,716
____________
121,786,783
LIABILITIES: Accrued expenses........................... 33,187
____________
NET ASSETS at value, represented by paid-in capital......................... $121,753,596
=============
SHARES OUTSTANDING
(1 BILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED)............... 121,753,596
NET ASSET VALUE, offering and redemption price per share.................... $1.00
========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 1997 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income................................ $1,891,035
EXPENSES: Management fee_Note 2(a)....................... $ 276,617
Shareholder servicing costs_Note 2(b).......... 11,435
Custodian fees................................. 9,576
Registration fees.............................. 5,520
Directors' fees and expenses_Note 2(c)......... 1,175
Prospectus and shareholders' reports........... 90
Miscellaneous.................................. 280
____________
Total Expenses 304,693
Less_reduction in management fee due to
undertakings_Note 2(a)..................... (151,041)
____________
Net Expenses 153,652
_______________
INVESTMENT INCOME_NET, representing net increase in net assets
resulting from operations........................................... $1,737,383
===============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
February 28, 1997 Year Ended
(Unaudited) August 31, 1996*
___________________ __________________
OPERATIONS:
Investment income_net............................................. $ 1,737,383 $ 1,285,661
___________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net.................................................. (1,737,383) (1,285,661)
___________________ __________________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.......................................... 54,872,121 129,477,481
Dividends reinvested................................................... 1,691,440 1,250,908
Cost of shares redeemed................................................ (35,057,716) (30,480,638)
___________________ __________________
Increase (Decrease) in Net Assets from Capital Stock Transactions.... 21,505,845 100,247,751
___________________ __________________
Total Increase (Decrease) in Net Assets.......................... 21,505,845 100,247,751
NET ASSETS:
Beginning of Period.................................................... 100,247,751 --
___________________ __________________
End of Period.......................................................... $121,753,596 $100,247,751
=================== ===================
*From December 1 ,1995 (commencement of operations) to August 31 , 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
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 Fund's financial statements.
Six Months Ended
February 28, 1997 Year Ended
(Unaudited) August 31, 1996(1)
________________ __________________
PER SHARE DATA:
Net asset value, beginning of period................................... $ 1.00 $ 1.00
________ ________
Investment Operations:
Investment income_net.................................................. .016 .025
________ ________
Distributions:
Dividends from investment income_net................................... (.016) (.025)
________ ________
Net asset value, end of period......................................... $ 1.00 $ 1.00
========= =========
TOTAL INVESTMENT RETURN................................................. 3.17%(2) 3.38%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........................ .28%(2) .06%(2)
Ratio of net investment income
to average net assets........................................ 3.14%(2) 3.25%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.......................... .27%(2) .68%(2)
Net Assets, end of period (000's Omitted).............................. $121,754 $100,248
(1) From December 1, 1995 (commencement of operations) to August 31, 1996.
(2) Annualized.
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SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC New Jersey Municipal Money Market Portfolio (the "Fund") is
a series of Dreyfus BASIC Municipal Fund, Inc. ( the "Company") which is
registered under the Investment Company Act of 1940 ("Act") as a
non-diversified open-end management investment company and operates as a
series company currently offering four series including the Fund. The Fund's
investment objective is to provide investors with as high a level of current
income exempt from Federal and New Jersey 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.
The Company 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.
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 Company's Board of Directors 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, 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 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.
At February 28, 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 BASIC New Jersey Municipal Money Market Portfolio
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. The Manager had undertaken
from September 1, 1996 through October 24, 1996 to reduce the management fee
paid by the Fund, to the extent that the Fund's aggregate expenses, exclusive
of taxes, brokerage, interest on borrowings and extraordinary expenses,
exceeded specified annual percentages of the Fund's average daily net assets.
The Manager has currently undertaken from October 25, 1996 through March 31,
1997, to reduce the management fee paid by the Fund, to the extent that the
Fund's aggregate expenses (exclusive of certain expenses as described above)
exceed an annual rate of .30 of 1% of the value of the Fund's average daily
net assets. The reduction in management fee, pursuant to the undertakings,
amounted to $151,041 during the period ended February 28, 1997.
In addition, the Manager has undertaken, through June 30, 1998, to reduce
the management fee paid by the Fund, to the extent that the Fund's aggregate
expenses (exclusive of certain expenses as described above) exceed an annual
rate of .45 of 1% of the value of the Fund's average daily net assets.
(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 February 28, 1997, the Fund was charged an aggregate
of $5,712 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 $3,350 during the period ended February 28, 1997.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $1,000 and an attendance fee of
$250 per meeting. The Chairman of the Board receives an additional 25% of
such compensation.
[Dreyfus lion "d" logo]
Registration Mark
DREYFUS BASIC NEW JERSEY
MUNICIPAL MONEY MARKET PORTFOLIO
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. 127SA972
[Dreyfus logo]
Registration Mark
BASIC New Jersey
Municipal Money
Market Portfolio
Semi-Annual
Report
February 28, 1997
