YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
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 six-month period ended February 28, 1999. Your
portfolio produced an annualized yield of 2.60% and, after taking into account
the effect of compounding, the annualized effective yield was 2.63%.*
THE ECONOMY
The American economy in the period ended February 28, 1999 had several
persistent themes. These included weakness in the world economy, strength in the
U.S., pervasive disinflation and action by central banks to lower interest rates
in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of that continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most of
the rest of Asia. The most severe phase occurred when Asian currencies dropped
and short-term interest rates rose. Tentative signs of a bottoming of the crises
in Asia had emerged by the end of your portfolio's fiscal year. However, Latin
America had begun to weaken in the aftermath of Brazilian economic weakness.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began 1998 at a modest pace and showed signs of stagnation by year-end. Even so,
the new European central bank postponed any reduction in interest rates in early
1999, probably because of a desire to build anti-inflationary credibility.
The U.S. economy over the last year grew at an impressively high rate despite
the economic weakness overseas. A major reason for this was that the negative
effects of foreign economic weakness on the traditional industrial sector were
offset by positive effects elsewhere in the economy. Low inflation and low
interest rates stimulated the housing and consumer sectors, while the technology
sector continued to expand.
The Federal Reserve Board eased monetary policy three times beginning on
September 30, 1998, lowering the Federal Funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to the financial stresses that started with the Russian default in the
summer of 1998 and culminated in the liquidity crisis of an overleveraged hedge
fund in the September/October period. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when fears
of financial crisis, deflation and possible economic recession were at their
greatest. However, long-term rates then drifted higher as the financial stresses
eased and the feared economic slowdown did not materialize.
MARKET ENVIRONMENT/PORTFOLIO FOCUS
Throughout the fall, the short-term municipal market continued to feel the
effects of the diminished supply of new issuance during the summer months. The
overall lack of availability of suitable New Jersey-exempt investments in the
one-year range held yields down for most of the period. As a result of the
relatively flat yield curve that existed, we utilized the commercial paper
market as a means of locking in attractive rates in the 60- to 90-day range
without having to extend out a full year.
As year-end approached, we were poised to take advantage of seasonal market
weakness and extend the portfolio's average maturity when possible. However, the
short-term municipal market's weakness in late December was slight and afforded
us less opportunity than in prior years. This, coupled with the lack of supply
of high-quality New Jersey-exempt paper, hindered our ability to extend the
portfolio' s average maturity. When possible, we selectively purchased one-year
notes issued by New Jersey municipalities which provided competitive market
yield and which met the high standards required by our internal investment
guidelines. We will continue to search for similar one-year investment
opportunities which will lock in higher rates while providing an attractive
return to the tax-exempt investor. As always, we will structure the portfolio in
an attempt to maximize current yield while maintaining our commitment to high
quality tax-exempt investments.
Very truly yours,
[Richard J. Moynihan signature]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 18, 1999
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly. There is no assurance that a money market fund will be able
to maintain a stable net asset value of $1.00 per share. Yield fluctuates.
<TABLE>
<CAPTION>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS FEBRUARY 28, 1999 (UNAUDITED)
Principal
Tax Exempt Investments--97.7% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
Atlantic City, GO Notes 4%, 8/15/1999 (Insured; AMBAC) . . . . . . . . . . . . . . . . . . $ 2,250,000 $ 2,253,991
Atlantic County Improvement Authority, Revenue, VRDN
(Aces Pooled Government Loan Program)
2.50% (LOC; Kredietbank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,000,000
Burlington County, BAN 4%, Series A, 6/11/1999 . . . . . . . . . . . . . . . . . . . . . . 3,724,000 3,727,611
Hudson County Improvement Authority, VRDN (Essential Purpose Pooled Government)
2.95% (LOC; Comerica Bank) (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,700,000 4,700,000
Middlesex County, GO Notes 4%, 10/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . 1,115,000 1,120,423
Monmouth County Improvement Authority, Revenue, VRDN
(Aces Pooled Government Loan Program)
2.40% (LOC; Union Bank of Switzerland) (a) . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,000,000
New Jersey Economic Development Authority:
SWDR (Newark Recycling) 3%, 6/15/1999 (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) . . . . . . . . . . . . . . . . . . 7,250,000 7,250,000
EDR, Refunding (Dow Chemical-El Dorado Terminal):
2.80%, Series 1984A (LOC; Dow Chemical Co.) (a). . . . . . . . . . . . . . . . . . 4,300,000 4,300,000
2.80%, Series 1984B (LOC; Dow Chemical Co.) (a) . . . . . . . . . . . . . . . . . . 3,500,000 3,500,000
Industrial and EDR (Merck and Co.) 3.15%, Series A and B (a). . . . . . . . . . . . . 1,700,000 1,700,000
Revenue:
(Hoffman-La Roche Inc. Project) 3.15% (LOC; Bayerische Landesbank) (a) . . . . . . 2,000,000 2,000,000
Thermal Energy Facilities (Thermal Energy Limited Partnership)
2.60% (LOC; First Chicago Corp.) (a) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,000,000
(U.S. Golf Association Project) 2.80% (LOC; PNC Bank) (a). . . . . . . . . . . . . 2,400,000 2,400,000
New Jersey Health Care Facilities Financing Authority, Revenue:
Refunding (Kennedy Health System) 5.50%, Series B, 7/1/1999 (Insured; MBIA) . . . . . . 2,275,000 2,293,496
VRDN:
(Hospital Capital Asset Financing):
2.80%, Series A (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . 5,500,000 5,500,000
2.80%, Series D (LOC; Chase Manhattan Bank) (a) . . . . . . . . . . . . . . . . . . 6,000,000 6,000,000
Refunding (Christian Health) 2.70%, Series 1997B (LOC; Valley National Bank) (a) . . . 3,700,000 3,700,000
New Jersey Sports and Exposition Authority, State Contract, VRDN
2.75%, Series C (Insured; MBIA and Liquidity Facility; Credit Suisse) (a) . . . . . . . 9,845,000 9,845,000
New Jersey Transportation Trust Fund Authority, Transportation System
5%, Series A, 12/15/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,250,000 2,282,328
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
2.60%, 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):
3.15%, Series 2 (LOC; Morgan Guaranty Trust Co.) (a) . . . . . . . . . . . . . . . . . 1,300,000 1,300,000
3.25%, Series 3 (Liquidity Facility; Morgan Guaranty Trust Co.) (a) . . . . . . . . . 4,000,000 4,000,000
3.25%, Series 4 (LOC; Landesbank Hessen) (a) . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,000,000
3.25%, Series 6 (Liquidity Facility; Bank of Nova Scotia) (a) . . . . . . . . . . . . 5,500,000 5,500,000
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS FEBRUARY 28, 1999 (UNAUDITED)
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Salem County Pollution Control Financing Authority, PCR, Refunding, VRDN
(Public Service Electric and Gas)
2.60% (BPA; Union Bank of Switzerland and Insured; MBIA) (a) . . . . . . . . . . . . . . $ 5,700,000 $ 5,700,000
Somerset County Industrial Pollution Control Financing Authority, Revenue,
Refunding, VRDN
(American Cyanamid) 2.50% (LOC; American Home Products) (a) . . . . . . . . . . . . . . 4,300,000 4,300,000
South Jersey Transportation Authority, BAN
2.95%, 11/3/1999 (LOC; First Union National Bank of North Carolina) . . . . . . . . . . 2,500,000 2,500,000
State of New Jersey, CP, Series 1999A:
2.75%, 4/8/1999 (Liquidity Facility: Bank of Nova Scotia and Commerzbank) . . . . . . . 3,000,000 3,000,000
2.55%, 4/20/1999 (Liquidity Facility: Bank of Nova Scotia and Commerzbank). . . . . . . 2,000,000 2,000,000
Woodbridge Township, BAN 4%, 7/1/1999. . . . . . . . . . . . . . . . . . . . . . . . . . . 3,820,450 3,825,992
_____________
TOTAL INVESTMENTS (cost $115,598,841). . . . . . . . . . . . . . . . . . . . . . . . . . . 97.7% $115,598,841
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3% $ 2,701,214
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $118,300,055
_______ _____________
</TABLE>
<TABLE>
<CAPTION>
Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <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 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 VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ _______ ________________ _________________
<S> <C> <C> <C>
F1+/F1 VMIG1/MIG1, P1 SP1+/SP1, A1+/A1 86.1%
AAA/AA (b) Aaa/Aa (b) AAA/AA (b) 8.6
Not Rated (c) Not Rated (c) Not Rated (c) 5.3
_______
100.0%
_______
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Securities payable on demand. Variable interest rate--subject to periodic
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>
<CAPTION>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1999 (UNAUDITED)
Cost Value
______________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $115,598,841 $115,598,841
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,299,311
Receivable for investment securities sold . . . . . . . . 800,114
Interest receivable . . . . . . . . . . . . . . . . . . . 631,795
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 16,360
_____________
118,346,421
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 19,094
Accrued expenses . . . . . . . . . . . . . . . . . . . . 27,272
_____________
46,366
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,300,055
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $118,303,534
Accumulated net realized gain (loss) on investments . . . (3,479)
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,300,055
_____________
SHARES OUTSTANDING
(1 billion shares of $.001 par value Common Stock authorized). . . . . . . . . . . . . . . 118,303,534
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 1999 (UNAUDITED)
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $1,804,271
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . . . . . $ 295,519
Shareholder servicing costs-Note 2(b) . . . . . . . . . . 44,088
Auditing fees . . . . . . . . . . . . . . . . . . . . . . 16,168
Registration fees . . . . . . . . . . . . . . . . . . . . 8,490
Custodian fees . . . . . . . . . . . . . . . . . . . . . 6,200
Prospectus and shareholders' reports . . . . . . . . . . 4,527
Directors' fees and expenses--Note 2(c) . . . . . . . . . 1,274
Legal fees . . . . . . . . . . . . . . . . . . . . . . . 1,012
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 3,446
___________
Total Expenses . . . . . . . . . . . . . . . . . . . . 380,724
Less--reduction in management fee due to
undertaking--Note 2(a) . . . . . . . . . . . . . . . . (110,764)
___________
Net Expenses . . . . . . . . . . . . . . . . . . . . . 269,960
___________
INVESTMENT INCOME-NET, representing net increase in net assets resulting
from operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,534,311
___________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
February 28, 1999 Year Ended
(Unaudited) August 31, 1998
_____________ _____________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,534,311 $ 3,819,515
Net realized gain (loss) from investments . . . . . . . . . . . . . . . . . . . . . . --- (3,479)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . . . . . . 1,534,311 3,816,036
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,534,311) (3,819,515)
_____________ _____________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,305,776 79,800,472
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,486,699 3,709,795
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37,114,911) (101,437,681)
_____________ _____________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . . . . . . (322,436) (17,927,414)
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . . . . . . (322,436) (17,930,893)
NET ASSETS
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,622,491 136,553,384
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,300,055 $118,622,491
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
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, 1999 Year Ended August 31,
__________________________
PER SHARE DATA: (Unaudited) 1998 1997 1996(1)
_________ _______ _______ _______
<S> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . .013 .030 .031 .025
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . . . . . . . . . . . . . . . . (.013) (.030) (.031) (.025)
_______ _______ _______ _______
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . $1.00 $1.00 $1.00 $1.00
_______ _______ _______ _______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . . . . . . . . . . 2.60%(2) 3.01% 3.17% 3.38%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . . . . . . . . .45%(2) .45% .36% .06%(2)
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . . . . . . . . 2.60%(2) 2.97% 3.12% 3.25%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . . . . . . . . . .19%(2) .19% .27% .68%(2)
Net Assets, end of period (000's Omitted) . . . . . . . . . . . . . . . $118,300 $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 (UNAUDITED)
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 custody agreement,
the Fund received net earnings credits of $4,583 during the period ended
February 28, 1999 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.
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.
DREYFUS BASIC NEW JERSEY MUNICIPAL MONEY MARKET PORTFOLIO
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
At February 28, 1999, 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, 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 undertaking, amounted to $110,764 during the period ended
February 28, 1999.
(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, 1999, the Fund was charged $37,564 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 February 28, 1999, the Fund was charged $4,147 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.
[reg.tm 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. 127SA992
BASIC New Jersey
Municipal Money
Market Portfolio
Semi-Annual
Report
February 28, 1999
