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 Portfolio for the 12-month period ended August 31, 1998. Your
Portfolio produced a yield of 2.97% and, after taking into account the effect of
compounding, the effective yield was 3.01%.*
The Economy
Having consistently viewed inflation as the primary threat to our
strong-growth, low-unemployment economy, the Federal Reserve Board (the "Fed")
now has another factor to ponder in setting monetary policy: the risk of global
recession. The wave of economic uncertainty that shook stock markets and caused
currencies to devalue begun in Thailand on July 2, 1997 (the onset of the Asian
financial crisis) and has since spread through Asia and around the world. By the
end of the reporting period, Russia had devalued its ruble. All this financial
tumult has underscored just how economically interrelated the world's nations
are. In fact, the fragility of global financial markets has been a key factor in
the Fed' s reluctance to raise interest rates in an economy now in its seventh
year of economic expansion. It feared that a rise in rates might threaten the
stability of other currencies.
There were additional economic factors that stayed the Fed's hand. Inflation
has remained tame, comfortably below 2% on the consumer level, and is minimal at
the production level of the economy as well. One reason for the low inflation
rate is the strong dollar, which keeps imports cheap; domestic producers are
constrained from raising prices by competition from cheaper foreign goods. This
has all been good news for consumers, who account for two thirds of all economic
activity. Bolstered by solid wage gains and abundant jobs, consumers have been a
driving positive force in the economy. By the end of the reporting period,
however, there were hints that this could change. The political and economic
instability in Russia jolted the U.S. stock market in August. The stock market
sell-off could cause consumers to grow less confident and curtail spending, even
though the larger-scale economic fundamentals for consumers remain positive: low
inflation and plentiful jobs (unemployment remains near its 28-year low of 4.5%)
. In response to the markets' uncertainty, short-term rates moved sharply lower.
In addition, second-quarter economic growth lessened to 1.6%, the slowest rate
in three years and dramatically below the 5.5% rate reported for the first
quarter. Many market participants indicated that an ease by the Fed might be a
strong probabilty given the recent changes in economic conditions.
Market Environment/Portfolio
While the Fed has left interest rates unchanged since March, 1997, market
technicals nevertheless created fluctuations in rates on short-term municipal
securities in this reporting period. During the first weeks of January, the
demand in the municipal money market was particularly strong due to large cash
inflows, although the market remained in a trading range throughout most of the
first quarter of 1998. However, in April, money funds were tapped for income tax
payments, placing upward pressure on rates as funds experienced redemptions.
Supply conditions in late May reversed this trend as municipal fund managers
anticipated the effect of several billion dollars worth of notes leaving the
market at the end of June. July brought rate stability back to the market as new
supply eased the demand pressure that had existed.
Unlike previous summer financing periods, this year's late summer calendar of
municipal notes (consisting mainly of California-exempt paper) was drastically
reduced by a combination of factors. Due to the strength of local and state
economies, several issuers reduced the amount of short-term borrowing needed.
Additionally, many issuers came to market with maturities outside of the
13-month maximum maturity allowable for money funds. In prior years, such issues
had shorter maturities and could be purchased by money funds. Other issues were
converted to a synthetic structure that is not currently permitted for purchase
in your Fund. The overall result was a lower yield for most one-year paper, both
national and state-specific. While we did participate in the one-year market
when attractive yield opportunities became available, we often utilized the
commercial paper market to keep average maturities from shortening
significantly. As the Fall approaches, we hope to have additional buying
opportunities in the New Jersey note market (for example, the recent addition of
the State of New Jersey commercial paper program to the market). We expect to
choose selectively among these issues and to structure the portfolio in an
attempt to maximize current yield while maintaining our commitment to high
quality tax-exempt investments.
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 this Fund and in The
Dreyfus Corporation.
Very truly yours
[Richard J. Moynihan logo signature]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
September 18, 1998
New York, N.Y.
*Effective yield is based upon dividends declared daily and reinvested monthly.
<TABLE>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
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STATEMENT OF INVESTMENTS AUGUST 31, 1998
Principal
Tax Exempt Investments--99.5% Amount Value
- ------------------------------------------------------- _____________ ____________
<S> <C> <C>
New Jersey--97.1%
Atlantic City, GO Notes 4%, 8/15/99 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . . $ 2,250,000 $ 2,258,317
Atlantic County Improvement Authority, Revenue, VRDN (Pooled Government Loan
Program)
2.65% (LOC; Kredietbank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000
Burlington County, BAN 4%, 6/11/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,724,000 3,734,018
East Brunswick Township, BAN 4%, 1/7/99. . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,003,545
Essex County Improvement Authority, Revenue, VRDN (Pooled Government Loan
Program)
2.50% (LOC; Banco Santander) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200,000 4,200,000
City of Fort Lee, TAN 4%, 2/2/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,007,309
Hudson County Improvement Authority, VRDN (Essential Purpose Pooled Government)
3.20% (LOC: Comerica Bank and Fuji Bank) (a) . . . . . . . . . . . . . . . . . . . . . . 4,700,000 4,700,000
Jersey City, BAN 4.25%, 1/15/99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000 1,502,592
Monmouth County Improvement Authority, Revenue, VRDN (Pooled Government Loan
Program)
2.90% (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,000,000
New Jersey Economic Development Authority:
SWDR (Newark Recycling) 3.95%, 12/15/98 (LOC; Societe Generale) . . . . . . . . . . . . 3,000,000 3,000,000
VRDN:
Dock Facility Revenue, Refunding (Bayonne/ IMTT Project)
3.15%, Series A (LOC; First Chicago Corp.) (a) . . . . . . . . . . . . . . . . . . 4,950,000 4,950,000
EDR, Refunding (Dow Chemical-El Dorado Terminal)
2.80%, Series 1984A (LOC; Dow Chemical Co.) (a) . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000
Industrial and EDR (Merck and Co.)
3.45%, Series A and B (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700,000 1,700,000
Revenue (U.S. Golf Association Project)
3.25%, Series A (LOC; PNC Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . 2,400,000 2,400,000
Thermal Energy Facilities, Revenue (Thermal Energy Limited Partnership)
3.10% (LOC; First Chicago Corp.) (a) . . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
New Jersey Health Care Facilities Financing Authority, Revenue, VRDN
(Hospital Capital Asset Financing):
3.05%, Series A (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . . 5,500,000 5,500,000
3.05%, Series D (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . . 6,000,000 6,000,000
Refunding (Christian Health) 2.77%, Series 97B (LOC; Valley National Bank) (a) . . . . 3,700,000 3,700,000
New Jersey Sports and Exposition Authority, VRDN (State Contract)
3%, Series C (Insured; MBIA and Liquidity; Credit Suisse) (a) . . . . . . . . . . . . . 9,945,000 9,945,000
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
2.90%, Series D (Insured; FGIC and SBPA; Societe Generale) (a) . . . . . . . . . . . . . 1,900,000 1,900,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
(Versatile Structure Obligation):
3.20%, Series 2 (LOC; Morgan Guaranty Trust Co.) (a) . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
3.35%, Series 3 (BPA; Morgan Guaranty Trust Co.) (a) . . . . . . . . . . . . . . . . . 5,700,000 5,700,000
3.35%, Series 5 (Liquidity; Bayerische Landesbank) (a) . . . . . . . . . . . . . . . . 5,300,000 5,300,000
3.30%, Series 6 (BPA; Bank of Nova Scotia) (a) . . . . . . . . . . . . . . . . . . . . 1,000,000 1,000,000
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
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STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1998
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- ____________ ____________
New Jersey (continued)
Salem County Pollution Control Financing Authority, PCR, Refunding, VRDN
(Public Service Electric and Gas)
2.95% (BPA; Union Bank of Switzerland and Insured; MBIA) (a) . . . . . . . . . . . . . . $ 6,500,000 $ 6,500,000
Somerset County Industrial Pollution Control Financing Authority, Revenue,
Refunding,
VRDN (American Cyanamid) 2.65% (LOC; American Home Products) (a) . . . . . . . . . . . . 4,400,000 4,400,000
Woodbridge Township, BAN 4%, 7/1/99. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,820,450 3,834,214
U.S. Related--2.4%
Commonwealth of Puerto Rico Government Development Bank, Refunding, VRDN
2.50% (BPA; Credit Suisse and Insured; MBIA) (a) . . . . . . . . . . . . . . . . . . . . 2,800,000 2,800,000
_____________
TOTAL INVESTMENTS (cost $118,034,995). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.5% $118,034,995
======= =============
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5% $ 587,496
======= =============
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $118,622,491
======= =============
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BAN Bond Anticipation Notes Insurance Corporation
BPA Bond Purchase Agreement PCR Pollution Control Revenue
EDR Economic Development Revenue SBPA Standby Bond Purchase Agreement
FGIC Financial Guaranty Insurance Company SWDR Solid Waste Disposal Revenue
GO General Obligation TAN Tax Anticipation Notes
LOC Letter of Credit VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ _________________ ___________________
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 86.1%
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 1.9
Not Rated (c) Not Rated (c) Not Rated (c) 12.0
_______
100.0%
_______
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Securities payable on demand. Variable interest rate-subject to change.
(b) Notes which are not MIG, SP or F rated are represented by bond ratings of
the issuers.
(c) 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 NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
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STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $118,034,995 $118,034,995
Interest receivable . . . . . . . . . . . . . . . . . . . 690,602
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 3,623
_____________
118,729,220
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 26,746
Cash overdraft due to Custodian . . . . . . . . . . . . . 43,073
Accrued expenses . . . . . . . . . . . . . . . . . . . . 36,910
_____________
106,729
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,622,491
=============
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $118,625,970
Accumulated net realized gain (loss) on investments . . . (3,479)
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,622,491
=============
SHARES OUTSTANDING
(1 BILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED). . . . . . . . . . . . . . . 118,625,970
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
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STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $4,398,875
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $642,288
Shareholder servicing costs--Note 2(b) . . . . . . . . . 128,106
Professional fees . . . . . . . . . . . . . . . . . . . . 18,008
Custodian fees . . . . . . . . . . . . . . . . . . . . . 13,339
Registration fees . . . . . . . . . . . . . . . . . . . . 9,510
Prospectus and shareholders' reports . . . . . . . . . . 8,697
Directors' fees and expenses--Note 2(c) . . . . . . . . . 2,652
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 4,588
___________
Total Expenses . . . . . . . . . . . . . . . . . . 827,188
Less--reduction in management fee due to
undertaking--Note 2(a) . . . . . . . . . . . . . . . . (247,828)
___________
Net Expenses . . . . . . . . . . . . . . . . . . . 579,360
___________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,819,515
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . . . . . (3,479)
___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $3,816,036
===========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
August 31, 1998 August 31, 1997
_______________ _______________
OPERATIONS:
<S> <C> <C>
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,819,515 $ 3,798,419
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . (3,479) --
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . 3,816,036 3,798,419
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,819,515) (3,798,419)
_____________ _____________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,800,472 111,644,558
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,709,795 3,698,562
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (101,437,681) (79,037,487)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . . . . (17,927,414) 36,305,633
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . (17,930,893) 36,305,633
NET ASSETS
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,553,384 100,247,751
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,622,491 $136,553,384
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
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.
Year Ended August 31,
___________________________________
PER SHARE DATA: 1998 1997 1996(1)
______ ______ ______
<S> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00
______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .030 .031 .025
______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . . . . . . . . (.030) (.031) (.025)
______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00
====== ====== ======
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.01% 3.17% 3.38%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . . . . . . . . .45% .36% .06%(2)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.97% 3.12% 3.25%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . . . . . . . . . . . . . . . .19% .27% .68%(2)
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . . . . . . . . $118,622 $136,553 $100,248
- -----------------------------
(1) From December 1, 1995 (commencement of operations) to August 31, 1996.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC New Jersey Municipal Money Market Portfolio (the "Fund") is a
separate non-diversified series of Dreyfus BASIC Municipal Fund, Inc. (the
" Company" ) which is registered under the Investment Company Act of 1940, as
amended (the "Act") as an 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 tax as is consistent with the
preservation of capital and maintenance of liquidity. The Dreyfus Corporation
(the "Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. 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 in securities 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. Under the terms of the custodian agreement, the Fund
received net earnings credits of $3,512 during the period ended August 31, 1998
based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.
(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 of 1986, as
amended (the "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 Code, and to make distributions
of income and net realized capital gain sufficient to relieve it from
substantially all Federal income and excise taxes.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of $352 available for Federal
income tax purposes to be applied against future net securities profits, if any
realized subsequent to August 31, 1998. The carryover does not include net
realized securities losses from November 1, 1997 through August 31, 1998 which
are treated, for Federal income tax purposes, as arising in fiscal 1999. If not
applied, the carryover expires in fiscal 2006.
At August 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).
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 has undertaken from
September 1, 1997 through June 30, 1998, and thereafter, until such time as it
gives shareholders at least 90 days' notice to the contrary, 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, commitment fees
and extraordinary expenses, exceed an annual rate of .45 of 1% of the value of
the Fund' s average daily net assets. The reduction in management fee, pursuant
to the undertakings, amounted to $247,828 during the period ended August 31,
1998.
(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
August 31, 1998, the Fund was charged $113,163 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 August 31, 1998, the Fund was charged $9,816 pursuant to the transfer
agency agreement.
(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 BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus BASIC New Jersey Municipal
Money Market Portfolio (one of the Series constituting Dreyfus BASIC Municipal
Fund, Inc.) as of August 31, 1998, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund' s management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of August 31, 1998 by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus BASIC New Jersey Municipal Money Market Portfolio at August 31, 1998,
the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
New York, New York
October 2, 1998
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended August
31, 1998 as "exempt-interest dividends" (not subject to regular Federal and, for
individuals who are New Jersey residents, New Jersey personal income taxes).
Dreyfus lion "d" logo (reg.tm)
Dreyfus logo (reg.tm)
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. 127AR988
BASIC New Jersey
Municipal Money
Market Portfolio
Annual Report
August 31, 1998
