FIDELITY COURT STREET TRUST II, N-30D, 1998-07-23

FIDELITY COURT STREET TRUST II
N-30D, 1998-07-23

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SPARTAN(registered trademark)

(REGISTERED TRADEMARK)

NEW JERSEY MUNICIPAL
FUNDS
AND
FIDELITY
NEW JERSEY MUNICIPAL
MONEY MARKET FUND
SEMIANNUAL REPORT
MAY 31, 1998
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES

SPARTAN NEW JERSEY MUNICIPAL INCOME FUND

4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVIEW

10 INVESTMENT CHANGES

11 INVESTMENTS

19 FINANCIAL STATEMENTS

SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET FUND

23 PERFORMANCE

25 FUND TALK: THE MANAGER'S OVERVIEW

27 INVESTMENT CHANGES

28 INVESTMENTS

35 FINANCIAL STATEMENTS

FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET FUND

39 PERFORMANCE

41 FUND TALK: THE MANAGER'S OVERVIEW

43 INVESTMENT CHANGES

44 INVESTMENTS

50 FINANCIAL STATEMENTS

NOTES 54 NOTES TO THE FINANCIAL STATEMENTS

</TABLE>

To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE

(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
While low interest rates and subdued inflation provided support for
stock and bond markets in the U.S. during the first five months of
1998, concerns about continuing economic and political difficulties in
Asia colored their performance. The stock market reached record
heights due to stronger-than-expected corporate earnings, but
retreated at times when concerns surfaced about how the Asian
volatility would affect business prospects. The bond market benefited
from these retreats, as investors sought alternatives offering lower
volatility.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
SPARTAN NEW JERSEY MUNICIPAL INCOME FUND
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at income, as reflected in the
fund's yield, to measure performance. If Fidelity had not reimbursed
certain fund expenses, the past 10 years total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

SPARTAN NJ MUNICIPAL INCOME 3.40% 8.44% 33.40% 121.89%

LB NEW JERSEY MUNICIPAL BOND WITH 3.60% 9.04% N/A N/A
PORT AUTHORITY OF NEW YORK AND NEW JERSEY

NEW JERSEY MUNICIPAL DEBT FUNDS AVERAGE 3.44% 8.58% 32.31% 119.47%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Lehman Brothers New Jersey Municipal Bond Index with Port
Authority of New York and New Jersey - a total return performance
benchmark for New Jersey investment-grade municipal bonds, including
Port Authority of New York and New Jersey bonds, with maturities of at
least one year. To measure how the fund's performance stacked up
against its peers, you can compare it to the New Jersey municipal debt
funds average, which reflects the performance of mutual funds with
similar objectives tracked by Lipper Analytical Services, Inc. The
past six months average represents a peer group of 59 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

SPARTAN NJ MUNICIPAL INCOME 8.44% 5.93% 8.30%

LB NEW JERSEY MUNICIPAL BOND WITH 9.04% N/A N/A
PORT AUTHORITY OF NEW YORK AND NEW JERSEY

NEW JERSEY MUNICIPAL DEBT FUNDS AVERAGE 8.58% 5.76% 8.18%

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a slightly different figure than
that obtained by averaging the cumulative total returns and
annualizing the result.)
$10,000 OVER 10 YEARS
Spartan NJ Muni Income LB Municipal Bond
00416 LB015
1988/05/31 10000.00 10000.00
1988/06/30 10224.77 10146.30
1988/07/31 10289.56 10212.45
1988/08/31 10314.59 10221.44
1988/09/30 10554.94 10406.45
1988/10/31 10848.46 10589.60
1988/11/30 10685.06 10492.60
1988/12/31 10877.66 10599.94
1989/01/31 11045.84 10819.15
1989/02/28 10918.73 10695.70
1989/03/31 10929.01 10670.14
1989/04/30 11250.89 10923.45
1989/05/31 11488.15 11150.33
1989/06/30 11671.80 11301.75
1989/07/31 11800.59 11455.57
1989/08/31 11655.41 11343.42
1989/09/30 11610.83 11309.61
1989/10/31 11772.74 11447.93
1989/11/30 11948.36 11648.27
1989/12/31 12003.34 11743.55
1990/01/31 11884.09 11688.00
1990/02/28 12005.10 11792.03
1990/03/31 12026.00 11795.56
1990/04/30 11869.67 11710.16
1990/05/31 12179.21 11965.80
1990/06/30 12302.26 12070.98
1990/07/31 12494.95 12248.42
1990/08/31 12253.93 12070.57
1990/09/30 12332.86 12077.45
1990/10/31 12507.45 12296.54
1990/11/30 12803.19 12543.82
1990/12/31 12860.66 12598.39
1991/01/31 13016.53 12767.46
1991/02/28 13099.45 12878.53
1991/03/31 13133.04 12883.17
1991/04/30 13315.62 13054.52
1991/05/31 13424.75 13170.57
1991/06/30 13422.36 13157.53
1991/07/31 13643.97 13317.79
1991/08/31 13805.65 13493.19
1991/09/30 13980.62 13668.87
1991/10/31 14129.81 13791.89
1991/11/30 14164.57 13830.37
1991/12/31 14446.44 14127.17
1992/01/31 14470.69 14159.38
1992/02/29 14478.60 14163.91
1992/03/31 14451.35 14169.15
1992/04/30 14567.71 14295.25
1992/05/31 14779.31 14463.51
1992/06/30 15015.07 14706.21
1992/07/31 15550.59 15147.10
1992/08/31 15333.44 14999.41
1992/09/30 15396.54 15097.51
1992/10/31 15080.96 14949.10
1992/11/30 15485.72 15216.84
1992/12/31 15704.38 15372.20
1993/01/31 15895.96 15550.98
1993/02/28 16516.01 16113.46
1993/03/31 16308.83 15943.14
1993/04/30 16498.41 16104.01
1993/05/31 16632.91 16194.51
1993/06/30 16936.81 16464.80
1993/07/31 16940.29 16486.37
1993/08/31 17336.33 16829.62
1993/09/30 17543.38 17021.31
1993/10/31 17549.71 17054.16
1993/11/30 17362.73 16903.91
1993/12/31 17755.21 17260.75
1994/01/31 17941.70 17457.87
1994/02/28 17412.09 17005.71
1994/03/31 16616.15 16313.24
1994/04/30 16711.71 16451.57
1994/05/31 16901.84 16594.21
1994/06/30 16813.04 16492.82
1994/07/31 17128.57 16795.13
1994/08/31 17195.36 16853.24
1994/09/30 16932.18 16605.84
1994/10/31 16624.19 16310.92
1994/11/30 16346.08 16016.02
1994/12/31 16734.91 16368.53
1995/01/31 17236.77 16836.34
1995/02/28 17636.21 17325.94
1995/03/31 17851.14 17525.02
1995/04/30 17885.47 17545.70
1995/05/31 18312.08 18105.58
1995/06/30 18199.19 17948.06
1995/07/31 18267.25 18118.21
1995/08/31 18419.07 18347.95
1995/09/30 18583.63 18464.09
1995/10/31 18867.81 18732.56
1995/11/30 19133.94 19043.33
1995/12/31 19303.81 19226.34
1996/01/31 19407.08 19371.50
1996/02/29 19317.07 19240.74
1996/03/31 19079.25 18994.84
1996/04/30 19008.16 18941.09
1996/05/31 18990.65 18933.51
1996/06/30 19194.56 19139.70
1996/07/31 19349.52 19313.87
1996/08/31 19330.73 19309.23
1996/09/30 19571.29 19579.56
1996/10/31 19814.36 19801.01
1996/11/30 20162.06 20163.36
1996/12/31 20089.23 20078.68
1997/01/31 20140.55 20116.63
1997/02/28 20291.82 20301.30
1997/03/31 20052.01 20030.68
1997/04/30 20191.67 20198.34
1997/05/31 20462.16 20502.12
1997/06/30 20657.21 20720.47
1997/07/31 21187.98 21294.43
1997/08/31 20996.47 21094.90
1997/09/30 21230.19 21345.29
1997/10/31 21355.97 21482.54
1997/11/30 21460.49 21608.86
1997/12/31 21766.52 21924.13
1998/01/31 21970.78 22150.39
1998/02/28 21957.15 22157.04
1998/03/31 21971.76 22176.53
1998/04/30 21886.18 22076.52
1998/05/29 22184.07 22425.99
IMATRL PRASUN SHR__CHT 19980531 19980612 101920 R00000000000123
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Spartan New
Jersey Municipal Income Fund on May 31, 1988. As the chart shows, by
May 31, 1998, the value of your investment would have grown to $22,189
- - a 121.89% increase on your initial investment. For comparison, look
at how the Lehman Brothers Municipal Bond Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 would have grown to $22,426 a 124.26% increase.

UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY
IS NO GUARANTEE OF HOW IT WILL
DO TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN THE
OPPOSITE DIRECTION OF INTEREST
RATES. IN TURN, THE SHARE PRICE,
RETURN AND YIELD OF A FUND THAT
INVESTS IN BONDS WILL VARY. THAT
MEANS IF YOU SELL YOUR SHARES
DURING A MARKET DOWNTURN,
YOU MIGHT LOSE MONEY. BUT IF
YOU CAN RIDE OUT THE MARKET'S
UPS AND DOWNS, YOU MAY
HAVE A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31,

1998 1997 1996 1995 1994 1993

DIVIDEND RETURN 2.48% 5.19% 5.37% 6.40% 5.26% 5.99%

CAPITAL RETURN 0.92% 1.25% 0.00% 10.66% -11.12% 6.13%

TOTAL RETURN 3.40% 6.44% 5.37% 17.06% -5.86% 12.12%

TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital return reflects both the amount paid by the fund to
shareholders as capital gain distributions and changes in the fund's
share price. Both returns assume the dividends or capital gains paid
by the fund are reinvested, if any.
DIVIDENDS AND YIELD

<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 4.67(CENTS) 27.71(CENTS) 55.55(CENTS)

ANNUALIZED DIVIDEND RATE 4.84% 4.86% 4.89%

30-DAY ANNUALIZED YIELD 4.27% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 7.13% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$11.37 over the past month, $11.43 over the past six months and $11.37
over the past one year, you can compare the fund's income over these
three periods. The 30-day annualized YIELD is a standard formula for
all funds based on the yields of the bonds in the fund, averaged over
the past 30 days. This figure shows you the yield characteristics of
the fund's investments at the end of the period. It also helps you
compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield, if you're in the 40.08%
combined effective 1998 federal and state tax bracket, but does not
reflect payment of the alternative minimum tax, if applicable.
SPARTAN NEW JERSEY MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Investor sentiment, shifting supply
and demand conditions, and
volatility in Asia played key roles
in the municipal bond market during
the six months that ended May 31,
1998. During this period, the
Lehman Brothers Municipal Bond
Index - a measure of the municipal
bond market - returned 3.78%.
To compare, the Lehman Brothers
Aggregate Bond Index - a
measure of the investment-grade
taxable bond market in the U.S. -
returned 4.09%. In late 1997,
volatility in Asia helped prop up the
muni bond market. Investors felt that
currency devaluations in that region
would translate into cheaper prices
for Asian goods and help control
the inflation that can eat into bonds'
fixed payments. Since the beginning
of 1998, though, muni bond supply
increased as many issuers took
advantage of lower interest rates
to refinance their debt at lower rates.
That, combined with softening
demand, dampened the
performance of muni bonds in
early 1998. On top of that, the
municipal bond market
experienced extremely heavy
issuance in March and April, as
issuers rushed to market before the
largest deal in municipal market
history took place in May - a
$3.5 billion issuance by Long Island
Power Authority. This heavy
supply, coupled with only
intermittent demand, put
downward pressure on municipal
bonds in April. Renewed fears of
economic and political dislocation in
Asia attracted investors to all
sectors of the bond market in May,
but, overall, municipals lagged
taxable issues through the first
five months of 1998.
An interview with Norm Lind, Portfolio Manager of Spartan New Jersey
Municipal Income Fund
Q. HOW DID THE FUND PERFORM, NORM?
A. For the six-month period that ended May 31, 1998, the fund had a
total return of 3.40%. To get a sense of how the fund did relative to
its competitors, the New Jersey municipal debt funds average returned
3.44% for the same six-month period, according to Lipper Analytical
Services. Additionally, the Lehman Brothers New Jersey Municipal Bond
Index with Port Authority - which tracks the types of securities in
which the fund invests - returned 3.60% for the same six-month period.
For the 12-month period that ended May 31, 1998, the fund returned
8.44%. That compared to the 8.58% return of the New Jersey municipal
debt funds average and the 9.04% return of the Lehman Brothers New
Jersey Municipal Bond Index with Port Authority over the same one-year
period.
Q. WHAT SECURITIES CONTRIBUTED MOST TO THE FUND'S PERFORMANCE?
A. Bonds rated Baa - which made up 9.7% of the fund's investments at
the end of the period - were strong performers. Faced with falling
interest rates, yield-hungry investors increasingly sought out these
bonds because they offered a yield advantage over higher-quality
bonds. What's more, there was a very small supply of these bonds
during the period. Strong demand pushed up against low supply and
boosted the prices of most Baa-rated bonds. That said, the fund's
position in these bonds was relatively light compared to some of its
competitors, helping to explain why the fund slightly trailed the
average New Jersey municipal fund during the period.
Q. WHY WAS THE FUND'S STAKE IN BAA-RATED BONDS SO SMALL?
A. Baa-rated bonds generally offer the highest yields among municipal
bonds deemed "investment-grade," and the past six months were no
exception. What was different, however, was that the yield advantage
offered by Baa-rated bonds over the top-rated Aaa bonds was very
small. In my view, that slight amount of additional income wasn't
adequate enough to cover the extra risk that Baa-rated bonds carried.
As of the end of the period, the additional income an investor could
pick up by investing in lower-quality bonds was smaller than it has
been historically. My concern was that if the spread - the difference
in yield between Aaa-rated and Baa-rated bonds - were to grow as the
result of an economic downturn or other reason, the prices of
Baa-rated bonds would suffer losses that would more than overwhelm
their income advantage. In light of the very tight spread relationship
that existed between Baa-rated and higher-quality bonds, I didn't feel
comfortable exposing the fund to additional risk for such a small
amount of income.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Yes, bonds sensitive to being prepaid before maturity lagged the
overall municipal market. For example, housing bonds experienced
increased prepayment activity when interest rates fell as mortgage
borrowers refinanced their debt in order to lower their interest
costs. While prepayment is good for the borrower, it can be bad for
housing bond holders because it can force them to reinvest at lower
interest rates.
Q. HOW DID YOU ALLOCATE THE FUND'S INVESTMENTS ACROSS BONDS WITH
VARIOUS MATURITIES?
A. I kept the fund focused on bonds with maturities between five and
15 years. I did that because the yield curve - which is a graphical
representation of the yield of bonds by ascending maturity dates - was
relatively flat beyond 15 years. Up to about a 15-year maturity, an
investor was paid an appropriate amount of added income for each
additional year of maturity. It is this additional income that
compensates the investor for the added risk taken on by investing in
the longer-maturity part of the market. But for bonds with maturities
of 15 years or longer, the extra income for each successive year was,
in my opinion, less attractive given the level of risk inherent in
longer-term bonds.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET AND THE FUND?
A. The direction of interest rates will be the primary determinant of
municipal performance, and it's anybody's guess where they will be six
months or a year from now. Municipals may be in for a fairly strong
period as they play catch up to the U.S. Treasury market that has
outpaced the municipal market. So far this year, New Jersey's economy
and fiscal condition appear to be in pretty good shape from a number
of angles. As far as the fund is concerned, I'll continue to emphasize
bonds that I think offer good value given their yields and their risk.
For example, I'm comfortable sticking with a fairly large weighting in
high-quality bonds for the time being, because I feel that
lower-quality securities currently do not offer enough additional
yield given their risks.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

NORM LIND ON THE LEHMAN
BROTHERS NEW JERSEY
MUNICIPAL BOND INDEX WITH
PORT AUTHORITY AND ITS ROLE IN
MANAGING THE FUND:
"I use the Lehman Brothers New
Jersey Municipal Bond Index with
Port Authority as a representation
of the overall market in which the
fund invests. The index includes
most of the universe of New Jersey
municipal bonds. I manage the
fund to have similar overall
interest-rate risk to its benchmark
index, but beyond that, the fund
can vary significantly from the
index. With respect to sector, issuer
and structural composition, the
fund's holdings reflect my research
conclusions on the relative
value of bonds."
FUND FACTS
GOAL: to provide high current
income exempt from New
Jersey state and federal income
taxes by investing normally in
investment-grade municipal
securities
FUND NUMBER: 416
TRADING SYMBOL: FNJHX
START DATE: January 1, 1988
SIZE: as of May 31, 1998,
more than $375 million
MANAGER: Norm Lind, since
1997; manager, various Fidelity
and Spartan municipal income
funds; joined Fidelity in 1986
(checkmark)
SPARTAN NEW JERSEY MUNICIPAL INCOME FUND
INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO

GENERAL OBLIGATION 26.6 28.1

TRANSPORTATION 20.3 20.8

HEALTH CARE 10.2 9.6

WATER & SEWER 9.9 7.9

HOUSING 7.5 8.0

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1998
6 MONTHS AGO

YEARS 12.7 12.7

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF MAY 31, 1998
6 MONTHS AGO

YEARS 6.3 6.5

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
AAA 43.0%
AA, A 41.4%
BAA 9.7%
BA, B 0.8%
NON-RATED 4.4%
SHORT-TERM
INVESTMENTS 0.7%
AAA 39.3%
AA, A 44.1%
BAA 9.9%
BA, B 0.9%
NON-RATED 4.4%
SHORT-TERM
INVESTMENTS 1.4%
ROW: 1, COL: 1, VALUE: 41.0
ROW: 1, COL: 2, VALUE: 41.4
ROW: 1, COL: 3, VALUE: 9.699999999999999
ROW: 1, COL: 4, VALUE: 1.8
ROW: 1, COL: 5, VALUE: 4.4
ROW: 1, COL: 6, VALUE: 1.7
ROW: 1, COL: 1, VALUE: 39.0
ROW: 1, COL: 2, VALUE: 43.3
ROW: 1, COL: 3, VALUE: 10.0
ROW: 1, COL: 4, VALUE: 1.7
ROW: 1, COL: 5, VALUE: 4.0
ROW: 1, COL: 6, VALUE: 2.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN NEW JERSEY MUNICIPAL INCOME FUND
INVESTMENTS MAY 31, 1998 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL BONDS - 99.3%
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW JERSEY - 87.3%
Atlantic County Ctfs. of Prtn. Pub. Facs.
Lease Agreement Rfdg.:
7.40% 3/1/07 (FGIC Insured) Aaa $ 3,035,000 $ 3,658,929
7.40% 3/1/08 (FGIC Insured) Aaa 3,260,000 3,977,461
Atlantic County Impt. Auth. Luxury Tax Rev.
(Convention Ctr.):
7.375% 7/1/10 (MBIA Insured)
(Escrowed to Maturity) (d) Aaa 1,000,000 1,224,360
7.40% 7/1/16 (MBIA Insured)
(Escrowed to Maturity) (d) Aaa 3,510,000 4,475,741
Atlantic County Util. Auth. Swr. Rev. Rfdg.:
Series A, 5.85% 1/15/15
(AMBAC Insured) Aaa 2,620,000 2,798,763
5.25% 1/15/11 (AMBAC Insured) Aaa 4,145,000 4,324,893
Bergen County Util. Auth. Wtr Poll. Cont. Rev.
Rfdg. Series B:
5.60% 12/15/03 (FGIC Insured) Aaa 2,000,000 2,138,500
(Cap. Appreciation) 0% 12/15/07
(FGIC Insured) Aaa 7,500,000 4,893,000
Camden County Impt. Auth. Health Sys. Rev.
(Catholic Health East) Series B,
5% 11/15/28 (AMBAC Insured) Aaa 1,000,000 984,860
Camden County Muni. Util. Auth. Swr. Rev. Rfdg.:
6% 7/15/03 (FGIC Insured) Aaa 3,180,000 3,443,018
5.50% 7/15/05 (FGIC Insured) Aaa 1,110,000 1,188,766
6% 7/15/06 (FGIC Insured) Aaa 1,060,000 1,176,377
5.50% 7/15/08 (FGIC Insured) Aaa 1,300,000 1,407,419
Cape May County Ind. Poll. Cont. Fing. Auth.
Rev. Rfdg. (Atlantic City Elec. Co.) Series A,
6.80% 3/1/21 (MBIA Insured) Aaa 1,350,000 1,688,945
Edison Township School:
6.50% 6/1/02 A1 1,000,000 1,083,770
6.50% 6/1/11 A1 1,000,000 1,178,740
Essex County Gen. Oblig.:
Rfdg. Series A-1:
6% 11/15/05 (FGIC Insured) Aaa 3,000,000 3,298,260
6% 11/15/06 (FGIC Insured) Aaa 1,500,000 1,657,005
6% 11/15/07 (FGIC Insured) Aaa 1,500,000 1,667,280
Rfdg. Series A-2, 6.25% 9/1/10
(AMBAC Insured) Aaa 4,735,000 5,326,686
Series A:
5.75% 9/1/07 (AMBAC Insured) Aaa 1,385,000 1,510,716
5.75% 9/1/08 (AMBAC Insured) Aaa 1,465,000 1,609,508
5.75% 9/1/09 (AMBAC Insured) Aaa 1,550,000 1,704,489
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Essex County Impt. Auth. County Gen. Oblig.
Lease Rev. 7% 12/1/20 (AMBAC Insured)
(Pre-Refunded to 12/1/00 @ 102) (d) Aaa $ 1,000,000 $ 1,089,910
Essex County Impt. Auth. Util. Sys. Rev. (Orange
Franchise) Series A, 5.75% 7/1/27
(MBIA Insured) Aaa 550,000 577,627
Essex County Util. Auth. Solid Waste Rev.
Series A:
5.75% 4/1/05 (FSA Insured) Aaa 1,000,000 1,083,070
6% 4/1/06 (FSA Insured) Aaa 1,000,000 1,106,450
Jersey City Muni. Util. Auth. Wtr. Rev.
5.25% 4/1/05 (FSA Insured) Aaa 3,720,000 3,920,024
Jersey City Swr. Auth. Swr. Rev. Rfdg.:
6% 1/1/07 (AMBAC Insured) Aaa 2,175,000 2,416,947
6% 1/1/09 (AMBAC Insured) Aaa 1,000,000 1,122,950
Lenape Reg. High School Dist. Unltd. Tax:
7.625% 1/1/13 (MBIA Insured) Aaa 675,000 874,078
7.625% 1/1/14 (MBIA Insured) Aaa 1,000,000 1,307,420
Middlesex County Gen. Oblig. 4.75% 8/1/02 Aaa 2,665,000 2,732,291
Middlesex County Poll. Cont. Fing. Auth. Rev. Rfdg.
(Amerada Hess Corp.):
7.875% 6/1/22 - 7,750,000 9,058,200
6.875% 12/1/22 - 5,000,000 5,411,250
Middletown Township Board of Ed.
5.70% 8/1/10 (MBIA Insured) Aaa 1,500,000 1,614,420
Monmouth County Impt. Auth. Wastewtr.
Treatment Facs. Rev. (Asbury Park Proj.)
7.375% 12/1/09
(Pre-Refunded to 12/1/99 @ 102) (d) BBB 1,000,000 1,068,540
Morris County Gen. Oblig. 6.50% 8/1/03 Aaa 2,180,000 2,423,615
New Jersey Bldg. Auth. Bldg. Rev. Rfdg.:
5.75% 6/15/09 Aa2 3,000,000 3,300,360
5% 6/15/14 Aa2 4,000,000 4,018,480
New Jersey Econ. Dev. Auth. Econ. Dev. Rev.
(Weyerhauser Co. Proj.) 9% 11/1/04 A2 2,000,000 2,498,840
New Jersey Econ. Dev. Auth. Rev.
(Edl. Testing Svc.):
Series A, 6.50% 5/15/05 (MBIA Insured) (f) Aaa 2,500,000 2,756,925
Series B, 6.125% 5/15/15 (MBIA Insured) Aaa 2,000,000 2,194,960
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Mkt. Transition Facs.
Rev. (Senior Lien) Series A:
5.25% 7/1/01 (MBIA Insured) Aaa $ 1,000,000 $ 1,034,070
5.80% 7/1/07 (MBIA Insured) Aaa 2,300,000 2,494,695
5.80% 7/1/09 (MBIA Insured) Aaa 5,000,000 5,437,250
5.875% 7/1/11 (MBIA Insured) Aaa 4,090,000 4,452,415
New Jersey Econ. Dev. Auth. Wtr. Facs. Rev.
(American Wtr. Co., Inc. Proj.) 5.95% 11/1/29
(FGIC Insured) (c) Aaa 7,700,000 8,121,267
New Jersey Edl. Facs. Auth. Rev.:
(Princeton Theological Seminary) Series B:
5.875% 7/1/22 Aaa 3,280,000 3,468,633
5.90% 7/1/26 Aaa 2,000,000 2,118,280
(St. Peters College) Series B:
5.375% 7/1/12 Baa3 1,450,000 1,464,181
5.375% 7/1/18 Baa3 1,000,000 996,870
(Seton Hall Univ.) 5.25% 7/1/09
(AMBAC Insured) (e)(f) Aaa 2,000,000 2,267,320
New Jersey Gen. Oblig.:
5.90% 8/1/02 Aa1 1,500,000 1,606,875
6% 7/15/03 Aa1 5,000,000 5,425,550
6.50% 7/15/04 Aa1 9,035,000 10,144,227
Rfdg. Series D:
5.75% 2/15/06 Aa1 1,950,000 2,132,423
6% 2/15/13 Aa1 7,500,000 8,499,375
Rfdg. Series E, 6% 7/15/10 Aa1 2,000,000 2,261,220
New Jersey Health Care Facs. Fing. Auth. Rev.:
Rfdg.:
(AHS Hosp. Corp.) Series A, 6% 7/1/11
(AMBAC Insured) Aaa 3,500,000 3,914,365
(Atlantic City Med. Ctr.) Series C,
6.80% 7/1/11 A3 4,200,000 4,596,102
(Burdett Tomlin Mem. Hosp.) Series D,
6.25% 7/1/06 (FGIC Insured) Aaa 1,710,000 1,837,156
(Commty. Med. Ctr./Kensington Manor
Care Ctr./Kimball Med. Ctr.)
5.25% 7/1/11 (FSA Insured) Aaa 3,835,000 4,007,192
(Kennedy Health Sys.) Series B:
5.75% 7/1/07 (MBIA Insured) Aaa 1,150,000 1,258,261
5.75% 7/1/08 (MBIA Insured) Aaa 750,000 823,680
5% 7/1/09 (MBIA Insured) Aaa 1,000,000 1,036,640
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Health Care Facs. Fing. Auth. Rev.: - continued
Rfdg.: - continued
(Newcomb Med. Ctr.) Series A,
7.875% 7/1/03 Ba3 $ 2,960,000 $ 3,142,247
(East Orange Gen. Hosp.) Series B,
7.75% 7/1/20 BBB+ 2,450,000 2,614,420
(Elizabeth Gen. Med. Ctr.) Series C:
7.10% 7/1/99 Baa1 1,125,000 1,158,851
7.25% 7/1/06 Baa1 1,975,000 2,105,686
(Holy Name Hosp.) Series A,
6.875% 7/1/04 (AMBAC Insured)
(Pre-Refunded to 7/1/98 @ 102) (d) Aaa 1,370,000 1,400,291
(Kennedy Mem. Hosp./Univ. Med. Ctr.):
Series D, 7.875% 7/1/09
(Pre-Refunded to 7/1/98 @ 102) (d) A1 3,000,000 3,069,450
Series E, 6% 7/1/20
(Pre-Refunded to 7/1/01 @ 102) (d) A1 1,600,000 1,717,648
(Muhlenberg Reg. Med. Ctr.) Series B,
8% 7/1/18 (AMBAC Insured) Aaa 2,000,000 2,046,280
(Pascack Valley Hosp.) 6.70% 7/1/11 BBB 5,200,000 5,424,276
New Jersey Hwy. Auth. Garden State Parkway
Gen. Rev. (Senior Parkway):
6% 1/1/05 A1 2,200,000 2,356,706
6.10% 1/1/06 A1 1,750,000 1,877,365
6.20% 1/1/10 A1 7,000,000 7,994,350
6% 1/1/19 (Escrowed to Maturity) (d) Aaa 4,485,000 5,095,274
New Jersey Hsg. Fin. Agcy. (Gen. Resolution)
Series A:
6.90% 11/1/07 AA+ 2,670,000 2,871,371
6.95% 11/1/08 AA+ 2,265,000 2,431,931
7% 11/1/09 AA+ 2,855,000 3,065,185
7.05% 11/1/10 AA+ 3,500,000 3,757,390
New Jersey Hsg. & Mtg. Fin. Agcy. Rev.:
Rfdg. Series 1:
6% 11/1/02 A+ 3,210,000 3,388,572
6.20% 11/1/04 A+ 3,100,000 3,337,522
6.45% 11/1/07 A+ 5,090,000 5,466,660
(Home Buyer) Series B, 7.90% 10/1/22
(MBIA Insured) (c) Aaa 1,115,000 1,168,665
New Jersey Trans. Corp. Series A,
5.40% 9/1/02 (FSA Insured) Aaa 1,100,000 1,144,825
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Trans. Trust Fund Auth. (Trans. Sys.)
Series B:
5% 6/15/01 Aa3 $ 1,000,000 $ 1,027,700
6% 6/15/06 Aa3 16,450,000 18,288,123
5.25% 6/15/10 Aa3 5,000,000 5,267,950
Rfdg. 6.50% 6/15/10 (MBIA Insured) Aaa 3,000,000 3,530,610
New Jersey Tpk. Auth. Tpk. Rev.:
Rfdg.:
10.375% 1/1/03 (Escrowed to Maturity) (d) Aaa 6,950,000 8,057,761
Series A:
6.30% 1/1/01 Baa1 1,000,000 1,049,260
6.40% 1/1/02 Baa1 1,000,000 1,067,880
6.75% 1/1/08 Baa1 1,000,000 1,063,390
Series C:
6.50% 1/1/09 Baa1 1,300,000 1,461,551
6.50% 1/1/16 Baa1 615,000 707,902
Series A:
5.40% 1/1/99 Baa1 1,900,000 1,914,972
5.60% 1/1/00 Baa1 1,585,000 1,619,933
5.90% 1/1/03 Baa1 9,000,000 9,519,660
New Jersey Wastewtr. Treatment Trust Loan Rev.:
Series A, 6% 7/1/10 Aa1 1,000,000 1,058,280
6.875% 6/15/06 Aa2 105,000 112,055
6.875% 6/15/09 Aa2 80,000 85,744
7% 6/15/10 Aa2 140,000 150,419
Newark School Qualified Bond Act
5.30% 9/1/16 (MBIA Insured) Aaa 3,500,000 3,593,170
North Brunswick Township Gen. Oblig. Rfdg.:
5.25% 5/15/10 (FGIC Insured) Aaa 1,235,000 1,297,207
5.25% 5/15/11 (FGIC Insured) Aaa 1,290,000 1,350,140
Passaic County Util. Auth. Rev.
(Solid Waste Sys.Proj.):
0% 3/1/99 (MBIA Insured) Aaa 3,725,000 3,623,904
Rfdg. (Cap. Appreciation) 0% 3/1/99
(MBIA Insured) Aaa 1,775,000 1,726,827
Rutgers Univ. Rfdg. (State Univ. of New Jersey)
Series A, 6.40% 5/1/13 A1 3,000,000 3,485,610
324,086,903
MUNICIPAL BONDS - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 9.1%
New York & New Jersey Port Auth.:
Consolidated 77th Series,
6.25% 1/15/27 (c) A1 $ 5,000,000 $ 5,296,950
Consolidated 92nd Series, 4.75% 1/15/29 A1 7,000,000 6,531,140
Consolidated 109th Series, 5.375% 1/15/32 A1 11,500,000 11,694,465
Rfdg.:
Consolidated 94th Series, 5.70% 12/1/10 A1 6,385,000 6,777,997
Consolidated 107th Series:
6% 10/15/05 (c) A1 1,740,000 1,896,409
6% 10/15/06 (c) A1 1,535,000 1,683,066
33,880,027
PUERTO RICO - 2.9%
Puerto Rico Commonwealth Gen. Oblig. Rfdg.
Series A, 6% 7/1/14 Baa1 2,000,000 2,126,120
Puerto Rico Commonwealth Infrastructure Fing.
Auth. Series A:
7.75% 7/1/08
(Pre-Refunded to 7/1/98 @ 102) (d) - 1,745,000 1,785,362
7.75% 7/1/08 Baa1 510,000 521,628
Puerto Rico Elec. Pwr. Auth. Rev. Series DD,
5% 7/1/12 (FSA Insured) Aaa 4,000,000 4,082,240
Puerto Rico Hsg. Fin. Corp. Rev. (Multi-Family
Mtg. Portfolio A) Series I, 7.50% 4/1/22,
LOC Puerto Rico Gov't. Dev. Bank AA 2,290,000 2,401,638
10,916,988
TOTAL MUNICIPAL BONDS
(Cost $348,124,651) 368,883,918
MUNICIPAL NOTES (A) - 0.7%
NEW JERSEY - 0.4%
New Jersey Econ. Dev. Auth. Natural Gas Facs.
Rev. (NUI Corp. Proj.) Series A, 3.90%
(BPA Bank of New York, NA)
(AMBAC Insured) VRDN (c) VMIG 1 1,000,000 1,000,000
New Jersey Econ. Dev. Auth. Wtr. Facs. Rev. Rfdg.
(United Wtr. New Jersey, Inc. Proj.) Series 96-C,
3.95% (AMBAC Insured)
(BPA Bank of New York, NA) VRDN (c) VMIG 1 600,000 600,000
1,600,000
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S PRINCIPAL VALUE
RATINGS (B) AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 0.3%
New York & New Jersey Port Auth. Spl. Oblig.
Rev. (Versatile Structure Oblig.) VRDN:
Series 2, 3.85% (BPA Morgan Guaranty
Trust Co., NY) VMIG 1 $ 300,000 $ 300,000
Series 3, 4% (BPA Morgan Guaranty
Trust Co., NY) VMIG 1 600,000 600,000
900,000
TOTAL MUNICIPAL NOTES
(Cost $2,500,000) 2,500,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $350,624,651) $ 371,383,918
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(c) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(d) Security collateralized by an amount sufficient to pay interest
and principal.
(e) Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
New Jersey Econ. Dev.
Auth. Rev. (Edl.
Testing Svc.) Series A,
6.50% 5/15/05
(MBIA Insured) 5/31/95 $ 2,699,550
New Jersey Edl.
Facs. Auth. Rev.
(Seton Hall Univ.)
5.25% 7/1/09
(AMBAC Insured) 5/29/98 $ 2,267,320
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding 144A issues) amounted to $5,024,245
or 1.3% of net assets (see Note 2 of Notes to Financial Statements).
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 75.1% AAA, AA, A 80.3%
Baa 7.2% BBB 9.1%
Ba 0.8% BB 0.0%
B 0.0% B 0.8%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 4.4%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 26.6%
Transportation 20.3
Health Care 10.2
Water & Sewer 9.9
Housing 7.5
Escrowed/Pre-Refunded 7.0
Others (individually less than 5%) 18.5
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1998, the aggregate cost of investment securities for
income tax purposes was $350,624,651. Net unrealized appreciation
aggregated $20,759,267, of which $20,810,368 related to appreciated
investment securities and $51,101 related to depreciated investment
securities.
SPARTAN NEW JERSEY MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $350,624,651) - $ 371,383,918
SEE ACCOMPANYING SCHEDULE

CASH 154,298

RECEIVABLE FOR FUND SHARES SOLD 34,801

INTEREST RECEIVABLE 6,897,269

TOTAL ASSETS 378,470,286

LIABILITIES

PAYABLE FOR INVESTMENTS PURCHASED ON A $ 2,267,320
DELAYED DELIVERY BASIS

PAYABLE FOR FUND SHARES REDEEMED 370,156

DISTRIBUTIONS PAYABLE 346,987

ACCRUED MANAGEMENT FEE 173,683

OTHER PAYABLES AND ACCRUED EXPENSES 5,038

TOTAL LIABILITIES 3,163,184

NET ASSETS $ 375,307,102

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 353,307,809

ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) 1,240,026
ON INVESTMENTS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 20,759,267

NET ASSETS, FOR 32,842,347 SHARES OUTSTANDING $ 375,307,102

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $11.43
SHARE ($375,307,102 (DIVIDED BY) 32,842,347 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 9,943,633

EXPENSES

MANAGEMENT FEE $ 1,011,306

NON-INTERESTED TRUSTEES' COMPENSATION 154

TOTAL EXPENSES BEFORE REDUCTIONS 1,011,460

EXPENSE REDUCTIONS (12,567) 998,893

NET INTEREST INCOME 8,944,740

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 1,465,717

FUTURES CONTRACTS 91,468 1,557,185

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 1,664,199

FUTURES CONTRACTS (24,753) 1,639,446

NET GAIN (LOSS) 3,196,631

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 12,141,371
FROM OPERATIONS

OTHER INFORMATION

EXPENSE REDUCTIONS $ 11,531
CUSTODIAN CREDITS

TRANSFER AGENT CREDITS 1,036

$ 12,567

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 8,944,740 $ 17,711,284
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 1,557,185 2,069,166

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 1,639,446 2,333,618

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 12,141,371 22,114,068
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS (8,944,740) (17,711,284)
FROM NET INTEREST INCOME

FROM NET REALIZED GAIN (1,741,864) (4,370,732)

TOTAL DISTRIBUTIONS (10,686,604) (22,082,016)

SHARE TRANSACTIONS 30,454,185 38,337,168
NET PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS 8,297,053 17,295,119

COST OF SHARES REDEEMED (26,500,395) (51,444,752)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 12,250,843 4,187,535
FROM SHARE TRANSACTIONS

REDEMPTION FEES 8,423 6,979

TOTAL INCREASE (DECREASE) IN NET ASSETS 13,714,033 4,226,566

NET ASSETS

BEGINNING OF PERIOD 361,593,069 357,366,503

END OF PERIOD $ 375,307,102 $ 361,593,069

OTHER INFORMATION
SHARES

SOLD 2,663,897 3,422,621

ISSUED IN REINVESTMENT OF DISTRIBUTIONS 726,084 1,543,723

REDEEMED (2,318,139) (4,589,671)

NET INCREASE (DECREASE) 1,071,842 376,673

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED NOVEMBER 30,
MAY 31, 1998

(UNAUDITED) 1997 1996 1995 1994 E 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 11.380 $ 11.380 $ 11.420 $ 10.320 $ 11.760 $ 11.240
BEGINNING OF PERIOD

INCOME FROM INVESTMENT .277 .561 .588 .623 .637 .640
OPERATIONS
NET INTEREST INCOME

NET REALIZED AND .105 .140 - 1.099 (1.291) .678
UNREALIZED GAIN (LOSS)

TOTAL FROM INVESTMENT .382 .701 .588 1.722 (.654) 1.318
OPERATIONS

LESS DISTRIBUTIONS

FROM NET INTEREST (.277) (.561) (.588) (.623) (.637) (.640)
INCOME

FROM NET REALIZED GAIN (.055) (.140) (.040) - (.150) (.160)

TOTAL DISTRIBUTIONS (.332) (.701) (.628) (.623) (.787) (.800)

REDEMPTION FEES ADDED - - - .001 .001 .002
TO PAID IN CAPITAL

NET ASSET VALUE, $ 11.430 $ 11.380 $ 11.380 $ 11.420 $ 10.320 $ 11.760
END OF PERIOD

TOTAL RETURN B, C 3.40% 6.44% 5.37% 17.06% (5.86)% 12.12%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD $ 375,307 $ 361,593 $ 357,367 $ 366,569 $ 327,060 $ 422,519
(000 OMITTED)

RATIO OF EXPENSES TO .55% A .55% .55% .55% .55% .55%
AVERAGE NET ASSETS

RATIO OF EXPENSES TO .54% A, D .55% .52% D .55% .55% .55%
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS

RATIO OF NET INTEREST 4.86% A 5.00% 5.26% 5.64% 5.70% 5.52%
INCOME TO AVERAGE
NET ASSETS

PORTFOLIO TURNOVER RATE 26% A 16% 57% 36% 8% 25%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE FORMER ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
E EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE

To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and the effect of the fund's $5 account closeout fee
on an average-sized account. Yield measures the income paid by a fund.
Since a money market fund tries to maintain a $1 share price, yield is
an important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past one year, past five year, and life of
fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN NJ MUNICIPAL MONEY MARKET 1.56% 3.19% 16.21% 31.15%

NEW JERSEY TAX-FREE 1.44% 3.17% 14.72% 29.40%
MONEY MARKET FUNDS AVERAGE

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on May 1, 1990. For example, if you
had invested $1,000 in a fund that had a 5% return over the past year,
the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the New Jersey tax-free money market funds average which reflects the
performance of New Jersey tax-free money market funds with similar
objectives tracked by IBC Financial Data, Inc. The past six months
average represents a peer group of 18 money market funds. (The periods
covered by the IBC Financial Data, Inc. numbers are the closest
available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN NJ MUNICIPAL MONEY MARKET 3.19% 3.05% 3.41%

NEW JERSEY TAX-FREE 3.17% 2.77% 3.24%
MONEY MARKET FUNDS AVERAGE

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
6/1/98 3/2/98 12/1/97 9/1/97 6/2/97

SPARTAN NEW JERSEY 3.27% 2.99% 3.34% 2.91% 3.42%
MUNICIPAL MONEY MARKET

IF FIDELITY HAD NOT 3.27% 2.99% 3.34% 2.91% 3.28%
REIMBURSED CERTAIN FUND
EXPENSES

NEW JERSEY 2.99% 2.66% 3.06% 2.65% 2.93%
TAX-FREE MONEY MARKET
FUNDS AVERAGE

SPARTAN NEW JERSEY 5.46% 4.99% 5.57% 4.86% 5.71%
MUNICIPAL MONEY MARKET -
TAX-EQUIVALENT

IF FIDELITY HAD NOT 5.46% 4.99% 5.57% 4.86% 5.47%
REIMBURSED CERTAIN FUND
EXPENSES

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However,
a straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the yield
you'd have to earn on a similar
taxable investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money market
fund will maintain a $1 share
price.
(checkmark)
SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Orr, Portfolio Manager of Spartan New Jersey
Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. Investors spent much of the period trying to determine when the
Federal Reserve Board might raise the fed funds rate - the rate banks
charge each other for overnight loans - as a way to slow the economy
and thus head off inflation. The economy continued to chug along at a
fairly strong pace and unemployment numbers were incredibly low -
coming in at 4.3% in April. But despite this period of continuing
expansion, wage pressures did not arise and inflation remained benign.
Under normal circumstances, the possibility of future inflation
created by these low unemployment numbers likely would have led the
Fed to raise rates. But the economic and political turmoil in Asia
kept the Fed on the sidelines during the period.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. For two reasons. The Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here, especially
considering the financial and political unrest in countries such as
Indonesia at the end of the period. An increase in short-term rates in
the U.S. would have likely strengthened the U.S. dollar even more
versus Asian currencies, which could have further hurt their markets.
In other words, the Fed was asking itself, "Why make the Asian markets
more volatile by raising rates in the U.S.?" The other factor was the
possibility that the Asian turmoil would have translated into a
reduction of U.S. net exports, which would likely have had a dampening
effect of its own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. For most of the period, I extended the fund's average maturity by
purchasing one-year fixed-rate notes. The prevalent supply of one-year
issues made them attractive. In addition, as is often the case,
fixed-rate instruments in the New Jersey market offered a yield
advantage over short-term variable-rate notes because of the strong
demand for the latter. Therefore, whenever I felt that concerns about
an interest-rate increase were built into the market, I bought
fixed-rate notes to lock in higher yields that would last throughout
the period. As a result, I extended the fund's average maturity from
the low-50-day range at the beginning of the period to the mid-60-day
range at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1998, was 3.27%, compared to
3.35% six months ago. The more recent seven-day yield was the
equivalent of a 5.46% taxable rate of return for New Jersey investors
in the 40.08% combined state and federal income tax bracket. Through
May 31, 1998, the fund's six-month total return was 1.56%, compared to
1.44% for the New Jersey tax-free money market funds average,
according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. There's one important wildcard: what happens in Asia. If we
continue to see the same level of turmoil there, I believe the Fed may
be obligated to stay on the sidelines. There's a lot of risk that a
rate increase in the U.S. could cause increased volatility in global
markets. Without a rate increase, the U.S. economy still might slow as
a result of fewer U.S. exports. In this case, the Asian situation
would do the Fed's job for them. The strength of the U.S. economy, in
light of the Asian situation, has left the Fed at an impasse. And,
although I believe the next Fed move will be to raise rates, I don't
believe it will be any time soon. The only factor that could change
the Fed's stance in the next few months would be real signs of
inflation - wage pressures as reflected in the employment cost index
or higher-than-expected increases in the consumer price index or the
producer price index. At that point, the Fed may risk causing more
problems in Asia to keep the U.S. economy on good footing.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: HIGH CURRENT TAX-FREE
INCOME WHILE MAINTAINING
SHARE PRICE STABILITY BY
INVESTING IN HIGH-QUALITY
SHORT-TERM NEW JERSEY
MUNICIPAL MONEY MARKET
SECURITIES
FUND NUMBER: 423
TRADING SYMBOL: FSJXX
START DATE: MAY 1, 1990
SIZE: AS OF MAY 31, 1998,
MORE THAN $513 MILLION
MANAGER: SCOTT ORR, SINCE 1997;
MANAGER, VARIOUS FIDELITY AND
SPARTAN MUNICIPAL MONEY MARKET
FUNDS; JOINED FIDELITY IN 1989
(CHECKMARK)
SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/98 11/30/97 10/31/97

0 - 30 71 69 66

31 - 90 6 12 9

91 - 180 6 9 13

181 - 397 17 10 12

WEIGHTED AVERAGE MATURITY
5/31/98 11/30/97 10/31/97

SPARTAN NEW JERSEY MUNICIPAL 63 DAYS 52 DAYS 58 DAYS
MONEY MARKET FUND

NEW JERSEY TAX-FREE 50 DAYS 51 DAYS 54 DAYS
MONEY MARKET FUNDS AVERAGE*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
ROW: 1, COL: 1, VALUE: 58.0
ROW: 1, COL: 2, VALUE: 14.0
ROW: 1, COL: 3, VALUE: 26.0
ROW: 1, COL: 4, VALUE: 2.0
VARIABLE RATE DEMAND
NOTES (VRDNS) 60%
COMMERCIAL PAPER
(INCLUDING CP MODE) 14%
MUNICIPAL
NOTES 25%
OTHER 1%

VARIABLE RATE DEMAND
NOTES (VRDNS) 59%
COMMERCIAL PAPER
(INCLUDING CP MODE) 14%
MUNICIPAL
NOTES 26%
OTHER 1%

ROW: 1, COL: 1, VALUE: 59.0
ROW: 1, COL: 2, VALUE: 14.0
ROW: 1, COL: 3, VALUE: 25.0
ROW: 1, COL: 4, VALUE: 2.0
SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET FUND
INVESTMENTS MAY 31, 1998 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - 77.8%
Bernardsville Gen. Oblig. BAN 3.75% 4/15/99 $ 3,457,700 $ 3,462,369
Bloomfield Township Gen. Oblig. BAN 3.80% 6/1/99 4,200,000
4,200,798
Burlington County Gen. Oblig. BAN 3.75% 4/22/99 2,500,000 2,502,143
Camden County Impt. Auth. Rev., VRDN:
(Jewish Commty. Ctr. Proj.) Series 1995, 4%,
LOC Nat'l. Westminster Bank PLC 1,100,000 1,100,000
(Parkview Redev. Hsg. Proj.) 3.90%,
LOC General Electric Cap. Corp. (b) 6,800,000 6,800,000
Chatham Township Gen. Oblig. BAN 3.75% 2/18/99 3,550,000 3,553,908
Cranford Township Gen. Oblig. BAN 3.76% 3/19/99 2,912,007 2,916,477
Delaware River Port Auth. Participating VRDN, Series SG-53,
4.02% (Liquidity Facility Societe Generale, France) (c) 9,640,000
9,640,000
East Brunswick Township Gen. Oblig. BAN 3.75% 4/13/99 8,152,000
8,163,314
East Windsor Reg. School Dist. BAN 4.25% 8/26/98 2,700,000
2,702,449
Fairfield Township Gen. Oblig. BAN 3.75% 8/6/98 2,700,000 2,701,188
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled
Gov't. Loan Prog.) Series 1986, 3.85%,
LOC Comerica Bank, Detroit, VRDN 24,960,000 24,960,000
Jefferson Township Gen. Oblig.
BAN Series 1998 A, 4% 2/19/99 3,663,650 3,674,341
Middlesex County Gen. Oblig.:
BAN 4% 1/26/99 19,027,000 19,087,176
Rfdg. Participating VRDN, Series BT-291, 3.70%
(Liquidity Facility Bankers Trust Co., NY) (c) 4,995,000 4,995,000
Montclair Township Gen. Oblig. BAN 4% 1/22/99 3,981,000 3,991,381
Montville Township Gen. Oblig. BAN 4.25% 8/28/98 5,100,000
5,105,324
Morristown Gen. Oblig. BAN 4% 5/4/99 6,350,000 6,361,288
New Jersey Econ. Dev. Auth. Bonds
(Chambers Cogeneration Proj.) Series 1991, 3.75%
7/7/98, LOC Credit Locale de France, CP mode (b) 8,300,000
8,300,000
New Jersey Econ. Dev. Auth. Dock Facs. Rev. Rfdg.
(Bayonne/IMTT-Bayonne Proj.) Series1993-C, 3.90%,
LOC First Nat'l. Bank of Chicago, VRDN 1,950,000 1,950,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Series 1989-B, 4%, LOC PNC Bank NA (b) $ 200,000 $ 200,000
(80 Carter Drive Assoc. Proj.) Series 1984, 3.95%,
LOC Marine Midland Bank 240,000 240,000
(500 International Drive Partners Proj.) Series 1995,
3.70%, LOC First Union Nat'l. Bank 3,000,000 3,000,000
(Arden Group) Series 1989 BB, 3.70%,
LOC PNC Bank NA (b) 1,400,000 1,400,000
(Block Drugs Corp.) Series 1989 A, 3.90%,
LOC SunTrust Bank, Atlanta 715,000 715,000
(Casa DiBertacchi Corp.) Series 1988, 3.95%,
LOC Marine Midland Bank (b) 400,000 400,000
(Ctr. For Aging Applewood Proj.) 3.80%,
LOC Summit Bank, Fleet Bank NA 2,275,000 2,275,000
(Dial Realty) Series 1988 L, 3.70%, LOC PNC Bank NA (b) 2,000,000
2,000,000
(E.P. Henry Corp. Proj.) 3.70%, LOC New Jersey
Nat'l. Bank (b) 870,000 870,000
(Ellison School, Inc.) Series 1989 KK, 3.70%,
LOC PNC Bank NA 550,000 550,000
(Guttenplan's Bakery) Series 1989 G, 3.70%,
LOC PNC Bank NA (b) 2,050,000 2,050,000
(Herzel Mor Corp.) Series 1989 L, 3.70%,
LOC PNC Bank NA (b) 450,000 450,000
(Headquarters Proj.)
Series 1997, 3.85%, LOC PNC Bank NA 2,700,000 2,700,000
(Peddie School Proj.) 3.75% (BPA PNC Bank NA) 500,000 500,000
(Pictorial Offset Corp.) Series 1989 H, 3.70%,
LOC PNC Bank NA (b) 800,000 800,000
(PVC Container Corp.) Series 1987 D, 4.10%,
LOC Nat'l. Westminster Bank PLC (b) 2,015,000 2,015,000
(Recycle, Inc. Proj.) Series 1995, 4.10%,
LOC Fleet Bank NA (b) 4,900,000 4,900,000
Rfdg. (New Jersey Natural Gas Co. Proj.)
Series 1997 A, 3.75% (AMBAC Insured)
(BPA Bank of New York, NA) (b) 6,000,000 6,000,000
Rfdg. (RJB Associates 1983 Proj.) 3.85%,
LOC PNC Bank NA 400,000 400,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN: - continued
Rfdg. (Stolthaven Perth Amboy Proj.) Series 1998 A,
3.80%, LOC Citibank, NA $ 4,450,000 $ 4,450,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev., VRDN:
(Eastern Silk) Second Series D2, 3.75%,
LOC Banque Nat'l. de Paris (b) 1,250,000 1,250,000
(Richard L. Tauber Issue) Series 93 B-1, 3.60%,
LOC Fleet Bank NA (b) 2,490,000 2,490,000
New Jersey Econ. Dev. Auth. Gas Facs. Rev.
(NUI Corp. Proj.) Series 1996 A, 3.90% (AMBAC Insured)
(BPA Bank of New York, NA) VRDN (b) 3,900,000 3,900,000
New Jersey Econ. Dev. Auth. Health Care Rev.
(Bayshore Health Ctr.) Series 1998 A, 3.90%,
LOC Kredietbank NV, VRDN 4,655,000 4,655,000
New Jersey Econ. Dev. Auth. Ind. Dev. Rev.
(Nat'l. Refrigerant) Series 1994 A, 3.85%,
LOC CoreStates Bank, VRDN (b) 905,000 905,000
New Jersey Econ. Dev. Auth. Wtr. Facs.:
Rev. Rfdg. (United Water New Jersey, Inc.)
Series 96-C, 3.95% (AMBAC Insured)
(BPA Bank of New York, NA) VRDN (b) 1,600,000 1,600,000
Participating VRDN (c):
Series 1997 B, 4% (Liquidity Facility Bank of
New York, NA) (b) 8,415,000 8,415,000
Series 1998, 4% (Liquidity Facility Bank of
New York, NA) (b) 1,500,000 1,500,000
New Jersey Edl. Facs. Auth. Participating VRDN,
Series SG-48, 3.92% (Liquidity Facility Societe
Generale, France) (c) 2,950,000 2,950,000
New Jersey Gen. Oblig. Series 1998 A, CP:
3.65% 6/2/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 7,800,000 7,800,000
3.70% 6/2/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 1,800,000 1,800,000
3.70% 6/2/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 5,500,000 5,500,000
3.70% 6/8/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 5,000,000 5,000,000
3.85% 6/9/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 3,000,000 3,000,000
3.90% 6/10/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 7,000,000 7,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Gen. Oblig. Series 1998 A, CP: - continued
4% 6/11/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) $ 5,300,000 $ 5,300,000
4% 6/12/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 5,300,000 5,300,000
3.70% 6/15/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 6,100,000 6,100,000
3.90% 6/15/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 5,400,000 5,400,000
New Jersey Gen. Oblig. Participating VRDN (c):
Series PA-335, 3.92% (Liquidity Facility Merrill
Lynch & Co., Inc.) 2,120,000 2,120,000
Series 1998, 3.95% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) 6,300,000 6,300,000
New Jersey Health Care Facs. Fin. Auth. Rev.
(Hosp. Cap. Asset Fing. Prog.) Series 1985 B, 3.70%,
LOC Chase Manhattan Bank, VRDN 1,500,000 1,500,000
New Jersey Higher Ed. Assistance Auth. Student Loan
Rev. Bonds (New Jersey Class Loan Prog.) Series 1997 B,
3.90%, tender 6/1/98 (MBIA Insured)
(BPA Landesbank Hessen-Thuringen) (b) 6,000,000 6,000,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN (c):
Series 1994 C-3003, 4.12% (Liquidity Facility Citibank NA) 6,200,000
6,200,000
Series 1994 C-3004, 3.97% (Liquidity Facility Citibank NA)
3,500,000 3,500,000
Series 1994 C-3005, 3.97% (Liquidity Facility Citibank NA)
3,900,000 3,900,000
Series 1996 F, 3.92% (Liquidity Facility Bank of America)
3,180,000 3,180,000
Series PA-117, 3.94% (Liquidity Facility Merrill
Lynch & Co., Inc.) (b) 4,880,000 4,880,000
Series PT-92, 3.94% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) (b) 7,465,000 7,465,000
Series PT-118, 3.94% (Liquidity Facility
Banco Santander SA) (b) 16,800,000 16,800,000
New Jersey Sports & Exposition Auth. Rev.
Series 1992 C, 3.65% (MBIA Insured)
(BPA Credit Suisse First Boston) VRDN 11,485,000 11,485,000
New Jersey Trans. Trust Fund Trans. Sys.:
Rev. Bonds Series 1995 A, 5.50% 6/15/98 2,500,000 2,501,521
Participating VRDN (c):
Series PA-330, 3.92% (Liquidity Facility Merrill
Lynch & Co., Inc.) 2,500,000 2,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Trans. Trust Fund Trans. Sys.: - continued
Participating VRDN (c): - continued
Series 1995 A, 3.90% (Liquidity Facility Nat'l.
Westminster Bank PLC) $ 4,150,000 $ 4,150,000
North Brunswick Gen. Oblig. BAN 4.25% 8/28/98 3,300,000 3,302,642
Ocean County Util. Auth. Wastewtr. Rev. Rfdg. Bonds
Series 1997, 5% 1/1/99 2,675,000 2,696,961
Passaic County Gen. Oblig. BAN:
4.25% 9/25/98 16,500,000 16,519,664
4% 4/2/99 10,500,000 10,533,472
Salem County Poll. Cont. Fin. Auth.:
Participating VRDN, Series PA-357, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 3,760,000
3,760,000
Poll. Cont. Rev., VRDN:
Rfdg. (Public Svc. Elec. & Gas)
Series1997 A, 3.80% (MBIA Insured)
(BPA Swiss Bank Corp.) (b) 1,800,000 1,800,000
(Atlantic City Elec. Co. Proj.) Series 1997B, 3.75%
(MBIA Insured) (BPA Bank of New York, NA) (b) 1,000,000 1,000,000
Somerset County Ind. Dev. Board Poll. Cont. Rev.
(3M Corp.) Series 1982, 3.50%, VRDN 100,000 100,000
Sparta Gen. Oblig. BAN 4.25% 6/12/98 2,500,000 2,500,297
Verona Township Gen. Oblig. BAN 4.25% 11/12/98 3,525,000 3,531,557
Washington Township/Gloucester County Gen. Oblig.
BAN 4.10% 1/15/99 3,236,429 3,244,241
West Milford Township Gen. Oblig. BAN:
Series A, 4% 7/23/98 2,295,000 2,296,457
Series B, 4% 1/22/99 2,298,000 2,303,994
West Windsor School Dist. BAN 4% 1/27/99 10,100,000 10,126,238
Woodbridge Township Gen. Oblig. BAN 4.25% 7/31/98 8,250,000
8,254,966
396,399,166
NEW YORK & NEW JERSEY - 21.4%
New York & New Jersey Port. Auth. Equip. Rev., VRDN:
Series 1995-1, 4% 5,000,000 5,000,000
Series 1996-3, 4% 5,000,000 5,000,000
Series 1996-5, 4% 4,800,000 4,800,000
Series 1997-1B, 4% 3,200,000 3,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - CONTINUED
New York & New Jersey Port Auth. Participating VRDN (c):
Series PA-67, 4.02% (Liquidity Facility Merrill
Lynch & Co., Inc.) $ 2,080,000 $ 2,080,000
Series SG-52, 4.02% (Liquidity Facility Societe
Generale, France) (b) 5,100,000 5,100,000
Series 1997:
4% (Liquidity Facility Bank of New York, NA) 2,100,000 2,100,000
4% (Liquidity Facility Bank of New York, NA) (b) 5,600,000
5,600,000
Series 6:
4.02% (Liquidity Facility Societe Generale, France) (b) 3,655,000
3,655,000
4.02% (Liquidity Facility Societe Generale, France) (b) 9,900,000
9,900,000
4.02% (Liquidity Facility Societe Generale, France) (b) 6,900,000
6,900,000
New York & New Jersey Port Auth. Rev.:
CP:
Series A:
3.70% 8/12/98
(Liquidity Facility Bank of Nova Scotia) (b) 3,115,000 3,115,000
3.65% 9/15/98
(Liquidity Facility Bank of Nova Scotia) (b) 3,850,000 3,850,000
Series B, 3.35% 7/15/98
(Liquidity Facility Bank of Nova Scotia) 1,800,000 1,800,000
VRDN:
Series 1991, 3.813% (b)(d) 6,400,000 6,400,000
Series 1992, 3.575% (d) 6,900,000 6,900,000
Series 1995, 3.575% (b)(d) 10,500,000 10,500,000
Series 1997-2, 3.575% (d) 10,400,000 10,400,000
New York & New Jersey Port Auth. Spl. Oblig. Rev.
(Versatile Structure Oblig.) VRDN:
Series 3, 4% (BPA Morgan Guaranty Trust Co., NY) 1,500,000
1,500,000
Series 4, 3.95% (BPA Landesbank Hessen-Thuringen) (b) 2,200,000
2,200,000
Series 6, 3.95% (BPA Bank of Nova Scotia) 9,000,000 9,000,000
109,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 0.8%
Puerto Rico Commonwealth Infrastructure Fin. Auth.
Participating VRDN, Series 1997 A, 3.75%
(Liquidity Facility CoreStates Bank) (c) $ 15,000 $ 15,000
Puerto Rico Hwy. & Trans. Auth. Series A, 3.75%
(AMBAC Insured) (Liquidity Facility Bank
of Nova Scotia) VRDN 3,800,000 3,800,000
3,815,000
TOTAL INVESTMENT IN SECURITIES - 100% $ 509,214,166
Total Cost for Income Tax Purposes $ 509,214,166
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION
SECURITY DATE COST
New York &
New Jersey Port
Auth. Rev., VRDN:
Series 1991, 3.813% 6/18/91 $ 6,400,000
Series 1992, 3.575% 2/14/92 $ 6,900,000
Series 1995, 3.575% 9/15/95 $ 10,500,000
Series 1997-2, 3.575% 9/15/97 $ 10,400,000
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding 144A issues) amounted to $34,200,000
or 6.7% of net assets (see Note 2 of Notes to Financial Statements).
INCOME TAX INFORMATION
At November 30, 1997, the fund had a capital loss carryforward of
approximately $71,000 of which $24,000, $16,000, $2,000 and $29,000
will expire on November 30, 2000, 2002, 2003 and 2004, respectively.
SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE - $ 509,214,166
SEE ACCOMPANYING SCHEDULE

SHARE TRANSACTIONS IN PROCESS 4,683,879

INTEREST RECEIVABLE 4,413,636

TOTAL ASSETS 518,311,681

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 52,588

PAYABLE FOR INVESTMENTS PURCHASED 4,200,798

SHARE TRANSACTIONS IN PROCESS 449,638

DISTRIBUTIONS PAYABLE 21,076

ACCRUED MANAGEMENT FEE 217,644

OTHER PAYABLES AND ACCRUED EXPENSES 7,705

TOTAL LIABILITIES 4,949,449

NET ASSETS $ 513,362,232

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 513,441,796

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (79,564)

NET ASSETS, FOR 513,414,601 SHARES OUTSTANDING $ 513,362,232

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($513,362,232 (DIVIDED BY) 513,414,601 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 9,356,006

EXPENSES

MANAGEMENT FEE $ 1,299,116

NON-INTERESTED TRUSTEES' COMPENSATION 143

TOTAL EXPENSES BEFORE REDUCTIONS 1,299,259

EXPENSE REDUCTIONS (8,294) 1,290,965

NET INTEREST INCOME 8,065,041

NET REALIZED GAIN (LOSS) ON INVESTMENTS (8,470)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,056,571

OTHER INFORMATION

EXPENSE REDUCTIONS $ 82
CUSTODIAN CREDITS

TRANSFER AGENT CREDITS 8,212

$ 8,294

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED ONE MONTH ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30, OCTOBER 31,
(UNAUDITED) 1997 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 8,065,041 $ 1,403,965 $ 16,638,749
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) (8,470) - (28,856)

INCREASE (DECREASE) IN - - (31)
NET UNREALIZED GAIN FROM
ACCRETION OF MARKET DISCOUNT

NET INCREASE (DECREASE) IN NET ASSETS 8,056,571 1,403,965 16,609,862
RESULTING FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET (8,065,041) (1,403,965) (16,638,749)
INTEREST INCOME

SHARE TRANSACTIONS AT NET ASSET 272,248,804 37,088,585 572,748,800
VALUE OF $1.00 PER SHARE
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET 7,946,292 1,377,406 16,278,251
INTEREST INCOME

COST OF SHARES REDEEMED (291,189,368) (34,651,925) (573,322,288)

NET INCREASE (DECREASE) IN NET (10,994,272) 3,814,066 15,704,763
ASSETS AND SHARES RESULTING FROM
SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN (11,002,742) 3,814,066 15,675,876
NET ASSETS

NET ASSETS

BEGINNING OF PERIOD 524,364,974 520,550,908 504,875,032

END OF PERIOD $ 513,362,232 $ 524,364,974 $ 520,550,908

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS SIX MONTHS ONE MONTH YEARS ENDED OCTOBER 31,
ENDED ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING OF PERIOD $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000

INCOME FROM INVESTMENT OPERATIONS .016 .003 .032 .032 .036 .024 .021
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.016) (.003) (.032) (.032) (.036) (.024) (.021)

NET ASSET VALUE, END OF PERIOD $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000

TOTAL RETURN B, C 1.56% .27% 3.22% 3.24% 3.65% 2.45% 2.17%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD
(000 OMITTED) $513,362 $524,365 $520,551 $504,875 $469,834 $395,935 $313,477

RATIO OF EXPENSES TO
AVERAGE NET ASSETS .50% A .50% A .40% D .35% D .31% D .28% D .44% D

RATIO OF EXPENSES TO
AVERAGE NET ASSETS AFTER .50% A .50% A .40% .34% E .31% .28% .44%
EXPENSE REDUCTIONS

RATIO OF NET INTEREST INCOME
TO AVERAGE NET ASSETS 3.10% A 3.28% A 3.15% 3.20% 3.59% 2.44% 2.15%

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED
AND DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE

To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past 10 years total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

FIDELITY NJ MUNICIPAL MONEY MARKET 1.49% 3.05% 14.70% 43.66%

NEW JERSEY TAX-FREE MONEY MARKET 1.44% 3.17% 14.72% 46.44%
FUNDS AVERAGE

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or ten years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up
against its peers, you can compare it to the New Jersey tax-free money
market funds average, which reflects the performance of municipal
money market funds with similar objectives tracked by IBC Financial
Data, Inc. The past six months average represents a peer group of 18
money market funds. (The periods covered by IBC Financial Data, Inc.
numbers are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

FIDELITY NJ MUNICIPAL MONEY MARKET 3.05% 2.78% 3.69%

NEW JERSEY TAX-FREE MONEY MARKET 3.17% 2.77% 4.62%
FUNDS AVERAGE

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
6/1/98 3/2/98 12/1/97 9/1/97 6/2/97

FIDELITY NEW JERSEY MUNICIPAL 3.17% 2.79% 3.24% 2.84% 3.17%
MONEY MARKET FUND

NEW JERSEY TAX-FREE 2.99% 2.66% 3.06% 2.65% 2.93%
MONEY MARKET FUNDS
AVERAGE

FIDELITY NEW JERSEY MUNICIPAL 5.29% 4.66% 5.41% 4.74% 5.29%
MONEY MARKET FUND -
TAX-EQUIVALENT

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However, a
straight comparison between the
two may be misleading because
it ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you would
have to earn on a similar taxable
investment to match the tax-free
yield - makes the comparison
more meaningful. Keep in mind
that the U.S. government neither
insures nor guarantees a money
market fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Orr, Portfolio Manager of Fidelity New Jersey
Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. During much of the period, market participants tried to determine
when the Federal Reserve Board might raise the fed funds rate - the
rate banks charge each other for overnight loans - as a way to slow
the economy and thus head off inflation. The economy continued to grow
at a fairly strong pace and unemployment numbers were incredibly low -
coming in at 4.3% in April. But despite this period of continuing
expansion, wage pressures did not arise and inflation remained benign.
Under normal circumstances, the possibility of future inflation
created by these low unemployment numbers likely would have led the
Fed to raise rates. But the economic and political turmoil in Asia
kept the Fed on the sidelines during the period.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. First of all, the Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here, especially
considering the financial and political unrest in countries such as
Indonesia at the end of the period. An increase in short-term rates in
the U.S. would have likely strengthened the U.S. dollar even more
versus Asian currencies, which could have further hurt their markets.
In other words, the Fed was asking itself, "Why make the Asian markets
more volatile by raising rates in the U.S.?" Second, there was the
possibility that the Asian turmoil would have translated into a
reduction of U.S. net exports, which would likely have had a dampening
effect of its own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. I extended the fund's average maturity by purchasing one-year
fixed-rate notes during most of the period. The prevalent supply of
one-year issues made them attractive. In addition, as is often the
case, fixed-rate instruments in the New Jersey market offered a yield
advantage over short-term variable-rate notes because of the strong
demand for the latter. Therefore, whenever I felt that concerns about
an interest-rate increase were built into the market, I bought
fixed-rate notes to lock in higher yields that would last throughout
the period. As a result, I extended the fund's average maturity from
the low-50-day range at the beginning of the period to the 60-day
range at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1998, was 3.18%, compared to
3.24% six months ago. The more recent seven-day yield was the
equivalent of a 5.31% taxable rate of return for New Jersey investors
in the 40.08% combined state and federal income tax bracket. Through
May 31, 1998, the fund's six-month total return was 1.49%, compared to
1.44% for the New Jersey tax-free money market funds average,
according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I think there's one important wildcard: what happens in Asia. If we
continue to see the same level of turmoil there, I believe the Fed may
be obligated to stay on the sidelines. There's a lot of risk that a
rate increase in the U.S. could cause increased volatility in global
markets. Without a rate increase, the U.S. economy still might slow as
a result of fewer U.S. exports. In this case, the Asian situation
would do the Fed's job for them. The strength of the U.S. economy, in
light of the Asian situation, has left the Fed at an impasse. And,
although I believe the next Fed move will be to raise rates, I don't
believe it will be any time soon. The only factor that could change
the Fed's stance in the next few months would be real signs of
inflation - wage pressures as reflected in the employment cost index
or higher-than-expected increases in the consumer price index or the
producer price index. At that point, the Fed may risk causing more
problems in Asia to keep the U.S. economy on good footing.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income while maintaining
share price stability by
investing in high-quality,
short-term New Jersey
municipal money market
securities
FUND NUMBER: 417
TRADING SYMBOL: FNJXX
START DATE: March 17, 1988
SIZE: as of May 31, 1998,
more than $526 million
MANAGER: Scott Orr, since
1997; manager, various Fidelity
and Spartan municipal money
market funds; joined Fidelity
in 1989
(checkmark)
FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/98 11/30/97 5/31/97

0 - 30 71 67 65

31 - 90 6 15 16

91 - 180 7 9 6

181 - 397 16 9 13

WEIGHTED AVERAGE MATURITY
5/31/98 11/30/97 5/31/97

FIDELITY NEW JERSEY MUNICIPAL 62 DAYS 50 DAYS 58 DAYS
MONEY MARKET FUND

NEW JERSEY TAX-FREE 50 DAYS 51 DAYS 51 DAYS
MONEY MARKET FUNDS AVERAGE*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
ROW: 1, COL: 1, VALUE: 54.0
ROW: 1, COL: 2, VALUE: 16.0
ROW: 1, COL: 3, VALUE: 27.0
ROW: 1, COL: 4, VALUE: 2.0
ROW: 1, COL: 1, VALUE: 56.0
ROW: 1, COL: 2, VALUE: 17.0
ROW: 1, COL: 3, VALUE: 24.0
ROW: 1, COL: 4, VALUE: 2.0
VARIABLE RATE DEMAND
NOTES (VRDNS) 56%
COMMERCIAL PAPER
(INCLUDING CP MODE) 16%
MUNICIPAL
NOTES 27%
OTHER 1%
VARIABLE RATE DEMAND
NOTES (VRDNS) 58%
COMMERCIAL PAPER
(INCLUDING CP MODE) 17%
MUNICIPAL
NOTES 24%
OTHER 1%
FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET FUND
INVESTMENTS MAY 31, 1998 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - 79.0%
Bernardsville Gen. Oblig. BAN 3.75% 4/15/99 $ 3,500,000 $ 3,504,696
Bloomfield Township Gen. Oblig. BAN 3.80% 6/1/99 4,300,000
4,300,817
Burlington County Gen. Oblig. BAN 3.75% 4/22/99 2,500,000 2,502,143
Camden County Impt. Auth. Rev., VRDN:
(Jewish Commty. Ctr. Proj.) Series 1995, 4%,
LOC Nat'l. Westminster Bank PLC 2,200,000 2,200,000
(Parkview Redev. Hsg. Proj.) 3.90%,
LOC General Electric Cap. Corp. (b) 6,000,000 6,000,000
Chatham Township Gen. Oblig. BAN 3.75% 2/18/99 3,585,350 3,589,297
Cranford Township Gen. Oblig. BAN 3.76% 3/19/99 2,850,000 2,854,375
Delaware River Port Auth. Participating VRDN, Series SG-53,
4.02% (Liquidity Facility Societe Generale, France) (c) 9,000,000
9,000,000
East Brunswick Township Gen. Oblig. BAN 3.75% 4/13/99 8,200,000
8,211,330
East Windsor Reg. School Dist. BAN 4.25% 8/26/98 2,300,000
2,302,086
Fairfield Township Gen. Oblig. BAN 3.75% 8/6/98 2,628,133 2,629,289
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled
Gov't. Loan Prog.) Series 1986, 3.85%,
LOC Comerica Bank, Detroit, VRDN 28,795,000 28,795,000
Jefferson Township Gen. Oblig. BAN
Series 1998 A, 4% 2/19/99 3,663,650 3,674,341
Middlesex County Gen. Oblig.:
BAN 4% 1/26/99 18,608,095 18,666,946
Rfdg. Participating VRDN, Series BT-290, 3.70%
(Liquidity Facility Bankers Trust Co., NY) (c) 5,050,000 5,050,000
Montclair Township Gen. Oblig. BAN 4% 1/22/99 3,883,000 3,893,125
Montville Township Gen. Oblig. BAN 4.25% 8/28/98 4,350,000
4,354,541
Morristown Gen. Oblig. BAN 4% 5/4/99 6,350,000 6,361,287
New Jersey Econ. Dev. Auth. Bonds:
(Chambers Cogeneration Proj.) Series 1991,
3.75% 7/7/98, LOC Credit Locale
de France, CP mode (b) 8,500,000 8,500,000
(Keystone Urban Renewal Proj.) Series 1992,
3.50% 9/10/98, LOC Union Bank of
Switzerland, CP mode (b) 2,800,000 2,800,000
New Jersey Econ. Dev. Auth. Dock Facs. Rev. Rfdg.
(Bayonne/IMTT-Bayonne Proj.) Series1993-C, 3.90%,
LOC First Nat'l. Bank of Chicago, VRDN 3,000,000 3,000,000
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
(500 International Drive Partners Proj.) Series 1995,
3.70%, LOC First Union Nat'l. Bank 2,800,000 2,800,000
(Casa DiBertacchi Corp.) Series 1988, 3.95%,
LOC Marine Midland Bank (b) 600,000 600,000
(Catholic Commty. Svcs.) Series 1995, 3.60%,
LOC First Union Nat'l. Bank 1,250,000 1,250,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN: - continued
(Ctr. For Aging Applewood Proj.) 3.80%,
LOC Summit Bank, Fleet Bank NA $ 2,275,000 $ 2,275,000
(Headquarters Proj.) Series 1997, 3.85%,
LOC PNC Bank NA 2,500,000 2,500,000
(Hoffman-LaRoche, Inc.) 3.90%,
LOC Bayerische Landesbank Girozentrale (b) 1,900,000 1,900,000
(Peddie School Proj.) 3.75% (BPA PNC Bank NA) 500,000 500,000
(PVC Container Corp.) Series 1987 D, 4.10%,
LOC Nat'l. Westminster Bank PLC (b) 1,135,000 1,135,000
(Russ Berrie & Co., Inc.) 3.50%, LOC Bank of New York, NA 1,000,000
1,000,000
Rfdg. (RJB Associates 1983 Proj.) 3.85%,
LOC PNC Bank NA 500,000 500,000
Rfdg. (Stolthaven Perth Amboy Proj.) Series 1998 A,
3.80%, LOC Citibank, NA 8,300,000 8,300,000
New Jersey Econ. Dev. Auth. Gas Facs. Rev.
(NUI Corp. Proj.) Series 1996 A, 3.90%
(AMBAC Insured) (BPA Bank of New York, NA) VRDN (b) 5,500,000
5,500,000
New Jersey Econ. Dev. Auth. Health Care Rev.
(Bayshore Health Ctr.) Series 1998 A, 3.90%,
LOC Kredietbank NV, VRDN 4,600,000 4,600,000
New Jersey Econ. Dev. Auth. Poll. Cont. Rev.
(Hoffman-LaRoche, Inc. Proj.) Series 1985, 3.70%,
LOC Wachovia Bank, NA, VRDN 3,000,000 3,000,000
New Jersey Econ. Dev. Auth. Wtr. Facs. Participating VRDN,
Series 1998, 4% (Liquidity Facility Bank of
New York, NA) (b)(c) 10,000,000 10,000,000
New Jersey Edl. Facs. Auth. Participating VRDN,
Series SG-48, 3.92% (Liquidity Facility
Societe Generale, France) (c) 2,900,000 2,900,000
New Jersey Gen. Oblig. Series 1998 A, CP:
3.65% 6/1/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 2,000,000 2,000,000
3.70% 6/1/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 4,900,000 4,900,000
3.70% 6/2/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 6,500,000 6,500,000
3.70% 6/8/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 6,000,000 6,000,000
3.85% 6/9/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 1,000,000 1,000,000
3.90% 6/10/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 6,000,000 6,000,000
3.95% 6/11/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 2,500,000 2,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Gen. Oblig. Series 1998 A, CP: - continued
4% 6/11/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) $ 4,700,000 $ 4,700,000
4% 6/12/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 4,700,000 4,700,000
3.70% 6/15/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 15,700,000 15,700,000
3.90% 6/15/98 (Liquidity Facility Bank of
Nova Scotia/Commerzbank AG) 6,800,000 6,800,000
New Jersey Gen. Oblig. Participating VRDN (c):
Series PA-340, 3.92% (Liquidity Facility
Merrill Lynch & Co., Inc.) 12,495,000 12,495,000
Series 1998, 3.95% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) 1,100,000 1,100,000
New Jersey Health Care Facs. Fin. Auth. Rev.
(Hosp. Cap. Asset Fing. Prog.) Series 1985 B, 3.70%,
LOC Chase Manhattan Bank, VRDN 8,100,000 8,100,000
New Jersey Higher Ed. Assistance Auth. Student Loan Rev.
Bonds (New Jersey Class Loan Prog.) Series 1997 B,
3.90%, tender 6/1/98 (MBIA Insured) (BPA Landesbank
Hessen-Thuringen) (b) 1,600,000 1,600,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN (c):
Series 1994 C-3003, 4.12%
(Liquidity Facility Citibank, NA) 6,800,000 6,800,000
Series 1994 C-3004, 3.97%
(Liquidity Facility Citibank, NA) 3,400,000 3,400,000
Series 1994 C-3005, 3.97%
(Liquidity Facility Citibank, NA) 3,500,000 3,500,000
Series 1996 F, 3.92% (Liquidity Facility Bank of America) 5,515,000
5,515,000
Series PA-117, 3.94% (Liquidity Facility Merrill
Lynch & Co., Inc.) (b) 4,320,000 4,320,000
Series PT-92, 3.94% (Liquidity facility Bayerische
Hypotheken-und Wechsel Bank) (b) 11,265,000 11,265,000
Series PT-118, 3.94% (Liquidity Facility
Banco Santander SA) (b) 9,870,000 9,870,000
New Jersey Sports & Exposition Auth. Rev.
Series 1992 C, 3.65% (MBIA Insured)
(BPA Credit Suisse First Boston) VRDN 13,370,000 13,370,000
New Jersey Trans. Trust Fund Trans. Sys. Participating VRDN (c):
Series PA-330, 3.92% (Liquidity Facility Merrill
Lynch & Co., Inc.) 2,500,000 2,500,000
Series 1995 A, 3.90% (Liquidity Facility Nat'l.
Westminster Bank PLC) 4,100,000 4,100,000
North Brunswick Township Gen. Oblig. BAN 4.25% 8/28/98 2,769,965
2,772,208
Ocean County Gen. Oblig. BAN 4.25% 6/19/98 15,000,000 15,002,591
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Ocean County Util. Auth. Wastewtr. Rev. Rfdg. Bonds
Series 1997, 5% 1/1/99 $ 2,600,000 $ 2,621,345
Passaic County Gen. Oblig. BAN:
4.25% 9/25/98 14,000,000 14,016,695
4% 4/2/99 10,500,000 10,533,472
Salem County Poll. Cont. Fin. Auth.:
Participating VRDN, Series PA-357, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 3,900,000
3,900,000
Poll. Cont. Rev. Rfdg. (Public Svc. Elec. & Gas)
Series 1997 A, 3.80% (MBIA Insured)
(BPA Swiss Bank Corp.) (b) 2,200,000 2,200,000
Somerset County Ind. Dev. Board Poll. Cont. Rev.
(3M Corp.) Series 1982, 3.50%, VRDN 600,000 600,000
Sparta Gen. Oblig. BAN 4.25% 6/12/98 2,224,000 2,224,264
Verona Township Gen. Oblig. BAN 4.25% 11/12/98 3,200,000 3,205,953
Washington Township/Gloucester County Gen. Oblig.
BAN 4.10% 1/15/99 3,250,000 3,257,844
West Milford Township Gen. Oblig. BAN:
Series A, 4% 7/23/98 2,200,000 2,201,397
Series B, 4% 1/22/99 2,100,000 2,105,477
West Windsor School Dist. BAN 4% 1/27/99 9,900,000 9,925,718
Woodbridge Township Gen. Oblig. BAN:
4.25% 7/1/98 3,600,000 3,600,276
4.25% 7/31/98 7,000,000 7,004,255
414,855,768
NEW YORK & NEW JERSEY - 21.0%
New York & New Jersey Port Auth. Equip. Rev., VRDN:
Series 1996-1, 4% 5,000,000 5,000,000
Series 1996-2, 4.10% (b) 3,500,000 3,500,000
Series 1996-4, 4% 4,200,000 4,200,000
Series 1997-1A, 4% 2,800,000 2,800,000
New York & New Jersey Port Auth. Participating VRDN (c):
Series SG-52, 4.02%
(Liquidity Facility Societe Generale, France) (b) 4,600,000
4,600,000
Series PA-67, 4.02%
(Liquidity Facility Merrill Lynch & Co., Inc.) 2,000,000 2,000,000
Series 1997:
4% (Liquidity Facility Bank of New York, NA) (b) 5,200,000
5,200,000
4% (Liquidity Facility Bank of New York, NA) 1,900,000 1,900,000
Series 6:
4.02% (Liquidity Facility Societe Generale, France) (b) 3,200,000
3,200,000
4.02% (Liquidity Facility Societe Generale, France) (b) 10,600,000
10,600,000
4.02% (Liquidity Facility Societe Generale, France) (b) 6,400,000
6,400,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - CONTINUED
New York & New Jersey Port Auth. Rev.:
CP:
Series A:
3.70% 8/12/98
(Liquidity Facility Bank of Nova Scotia) (b) $ 3,100,000 $
3,100,000
3.50% 9/9/98
(Liquidity Facility Bank of Nova Scotia) (b) 3,120,000 3,120,000
Series B:
3.35% 7/15/98
(Liquidity Facility Bank of Nova Scotia) 1,215,000 1,215,000
3.50% 9/10/98
(Liquidity Facility Bank of Nova Scotia) 1,135,000 1,135,000
3.55% 9/10/98
(Liquidity Facility Bank of Nova Scotia) 2,515,000 2,515,000
VRDN:
Series 1991, 3.813% (b)(d) 8,800,000 8,800,000
Series 1992, 3.575% (b)(d) 6,800,000 6,800,000
Series 1995, 3.575% (b)(d) 9,400,000 9,400,000
Series 1997-1, 3.575% (d) 8,900,000 8,900,000
New York & New Jersey Port. Auth. Spl. Oblig. Rev. (Versatile
Structure Oblig.) VRDN:
3.85% (BPA Morgan Guaranty Trust Co., NY) 2,500,000 2,500,000
4.20% (BPA Bank of Tokyo-Mitsubishi Ltd.,
Sumitomo Bank Ltd., Japan) (b) 2,700,000 2,700,000
Series 3, 4% (BPA Morgan Guaranty Trust Co., NY) 6,290,000
6,290,000
Series 6, 3.95% (BPA Bank of Nova Scotia) 4,200,000 4,200,000
110,075,000
TOTAL INVESTMENT IN SECURITIES - 100% $ 524,930,768
Total Cost for Income Tax Purposes $ 524,930,768
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION
SECURITY DATE COST
New York & New
Jersey Port Auth.
Rev., VRDN:
Series 1991, 3.813% 6/18/91 $ 8,800,000
Series 1992, 3.575% 2/14/92 $ 6,800,000
Series 1995, 3.575% 9/15/95 $ 9,400,000
Series 1997-1, 3.575% 9/15/97 $ 8,900,000
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding 144A issues) amounted to $33,900,000
or 6.4% of net assets (see Note 2 of Notes to Financial Statements).
INCOME TAX INFORMATION
At November 30, 1997, the fund had a capital loss carryforward of
approximately $55,000 of which $8,000, $21,000 and $26,000 will expire
on November 30, 2001, 2003 and 2005, respectively.
FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE - $ 524,930,768
SEE ACCOMPANYING SCHEDULE

SHARE TRANSACTIONS IN PROCESS 5,775,421

INTEREST RECEIVABLE 4,999,712

TOTAL ASSETS 535,705,901

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 33,628

PAYABLE FOR INVESTMENTS PURCHASED 4,300,817

SHARE TRANSACTIONS IN PROCESS 4,513,072

DISTRIBUTIONS PAYABLE 35,873

ACCRUED MANAGEMENT FEE 168,092

OTHER PAYABLES AND ACCRUED EXPENSES 115,401

TOTAL LIABILITIES 9,166,883

NET ASSETS $ 526,539,018

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 526,596,370

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (57,352)

NET ASSETS, FOR 526,596,433 SHARES OUTSTANDING $ 526,539,018

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($526,539,018 (DIVIDED BY) 526,596,433 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 9,297,815

EXPENSES

MANAGEMENT FEE $ 1,004,702

TRANSFER AGENT FEES 440,908

ACCOUNTING FEES AND EXPENSES 51,407

NON-INTERESTED TRUSTEES' COMPENSATION 1,150

CUSTODIAN FEES AND EXPENSES 15,846

REGISTRATION FEES 20,614

AUDIT 13,274

LEGAL 10,349

REPORTS TO SHAREHOLDERS 16,952

TOTAL EXPENSES BEFORE REDUCTIONS 1,575,202

EXPENSE REDUCTIONS (14,563) 1,560,639

NET INTEREST INCOME 7,737,176

NET REALIZED GAIN (LOSS) ON INVESTMENTS (2,116)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,735,060

OTHER INFORMATION

EXPENSE REDUCTIONS

TRANSFER AGENT CREDITS $ 14,563

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 7,737,176 $ 13,730,894
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) (2,116) (26,426)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 7,735,060 13,704,468
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (7,737,176) (13,730,894)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 898,843,414 1,381,762,190
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 7,503,041 13,414,508

COST OF SHARES REDEEMED (867,466,537) (1,330,712,880)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 38,879,918 64,463,818
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 38,877,802 64,437,392

NET ASSETS

BEGINNING OF PERIOD 487,661,216 423,223,824

END OF PERIOD $ 526,539,018 $ 487,661,216

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED NOVEMBER 30,
MAY 31, 1998
(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD

INCOME FROM INVESTMENT .015 .030 .029 .033 .022 .019
OPERATIONS
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET INTEREST (.015) (.030) (.029) (.033) (.022) (.019)
INCOME

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD

TOTAL RETURN B, C 1.49% 3.03% 2.93% 3.33% 2.19% 1.94%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF $ 526,539 $ 487,661 $ 423,224 $ 434,709 $ 399,548 $ 359,587
PERIOD (000 OMITTED)

RATIO OF EXPENSES TO .60% A .61% .63% .62% .62% .63%
AVERAGE NET ASSETS

RATIO OF EXPENSES TO .60% A .61% .61% D .62% .62% .63%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INTEREST 2.95% A 2.98% 2.89% 3.28% 2.17% 1.92%
INCOME TO AVERAGE
NET ASSETS

</TABLE>

A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1998 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan New Jersey Municipal Income Fund (the income fund) is a fund
of Fidelity Court Street Trust. Spartan New Jersey Municipal Money
Market Fund and Fidelity New Jersey Municipal Money Market Fund(the
money market funds) are funds of Fidelity Court Street Trust II. Each
trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company.
Fidelity Court Street Trust and Fidelity Court Street Trust II (the
trusts) are organized as a Massachusetts business trust and a Delaware
business trust, respectively. Each fund is authorized to issue an
unlimited number of shares. The financial statements have been
prepared in conformity with generally accepted accounting principles
which require management to make certain estimates and assumptions at
the date of the financial statements. The following summarizes the
significant accounting policies of the income fund and the money
market funds:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities for
which quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
MONEY MARKET FUNDS. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. For the money market funds, accretion of market discount
represents unrealized gain until realized at the time of a security
disposition or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for market discount and futures transactions. The fund also
utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable gain remaining at fiscal year end is distributed in the
following year.
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in the income fund
less than 180 days are subject to a short-term trading fee equal to
.50% of the proceeds of the redeemed shares. The fee, which is
retained by the fund, is accounted for as an addition to paid in
capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the funds may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc., (formerly FMR Texas, Inc.) an
affiliate of Fidelity Management & Research Company (FMR). The Cash
Fund is an open-end money market fund available only to investment
companies and other accounts managed by FMR and its affiliates. The
Cash Fund seeks preservation of capital, liquidity, and current income
by investing in high-quality, short-term municipal securities of
various states and municipalities. Income distributions from the Cash
Fund are declared daily and paid monthly from net interest income.
Income distributions earned by the funds are recorded as interest
income in the accompanying financial statements.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in each applicable fund's
schedule of investments. Each fund may receive compensation for
interest forgone in the purchase of a when-issued security. With
respect to purchase commitments, each fund identifies securities as
segregated in its custodial
2. OPERATING POLICIES -
CONTINUED
WHEN-ISSUED SECURITIES - CONTINUED
records with a value at least equal to the amount of the commitment.
Losses may arise due to changes in the market value of the underlying
securities, if the counterparty does not perform under the contract,
or if the issuer does not issue the securities due to political,
economic, or other factors.
FUTURES CONTRACTS. The income fund may use futures contracts to manage
its exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Losses may arise from changes in the value of the underlying
instruments or if the counterparties do not perform under the
contracts' terms. Gains (losses) are realized upon the expiration or
closing of the futures contracts. Futures contracts are valued at the
settlement price established each day by the board of trade or
exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $60,623,854 and $47,363,040, respectively.
The market value of futures contracts opened and closed during the
period amounted to $23,236,816 and $25,137,750, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the investment adviser for Fidelity New Jersey
Municipal Money Market Fund, FMR receives a monthly fee that is
calculated on the basis of a group fee rate plus a fixed individual
fund fee rate applied to the average net assets of the fund. The group
fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR.
The rates ranged from .1100% to .3700% for the period. The annual
individual fund fee rate is .25%. In the event that these rates were
lower than the contractual rates in effect during the period, FMR
voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. For the period, the management fee was
equivalent to an annualized rate of .38% of average net assets for
Fidelity New Jersey Municipal Money Market Fund.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
As Spartan New Jersey Municipal Income Fund's and Spartan New Jersey
Municipal Money Market Fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .55% and .50% of average net assets for Spartan New
Jersey Municipal Income Fund and Spartan New Jersey Municipal Money
Market Fund, respectively.
FMR also bears the cost of providing shareholder services to Spartan
New Jersey Municipal Income Fund and Spartan New Jersey Municipal
Money Market Fund. To offset the cost of providing these services, FMR
or its affiliates collect certain transaction fees from the funds'
shareholders which amounted to $0 and $3,029 for Spartan New Jersey
Municipal Income Fund and Spartan New Jersey Municipal Money Market
Fund, respectively.
SUB-ADVISER FEE. As the money market funds' investment sub-adviser,
Fidelity Investments Money Management, Inc. (formerly FMR Texas,
Inc.), a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for Fidelity
New Jersey Municipal Money Market Fund. UMB has entered into a
sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate
of FMR, under which FSC performs the activities associated with the
fund's transfer and shareholder servicing agent and accounting
functions. The fund pays account fees and asset-based fees that vary
according to account size and type of account. FSC pays for
typesetting, printing and mailing of all shareholder reports, except
proxy statements. The accounting fee is based on the level of average
net assets for the month plus out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an
annualized rate of .17% of average net assets for Fidelity New Jersey
Municipal Money Market Fund.
5. EXPENSE REDUCTIONS.
Fidelity New Jersey Municipal Money Market Fund and FMR (on behalf of
Spartan New Jersey Municipal Income Fund and Spartan New Jersey
Municipal Money Market Fund) have entered into arrangements with their
custodians and transfer agents whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of each
applicable fund's expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
MANAGING YOUR INVESTMENTS

Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpress(registered trademark) provides a single
toll-free number to access account balances, positions, quotes and
trading. It's easy to navigate the service, and on your first call,
the system will help you create a personal identification number (PIN)
for security.
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
TO WRITE FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
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CALIFORNIA
815 East Birch Street
Brea, CA
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10100 Santa Monica Blvd.
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251 University Avenue
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455 Market Street
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1400 Civic Drive
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48 West Putnam Avenue
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4400 N. Federal Highway
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4090 N. Ocean Boulevard
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1907 West State Road 434
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2401 PGA Boulevard
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8065 Beneva Road
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1502 N. Westshore Blvd.
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GEORGIA
3445 Peachtree Road, N.E.
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1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
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INDIANA
4729 East 82nd Street
Indianapolis, IN
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
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44 Mall Road
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416 Belmont Street
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MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
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NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
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4611 Sharon Road
Charlotte, NC
2200 West Main Street
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OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments
Money Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning Jr., Vice President
Boyce I. Greer, Vice President
Dwight D. Churchill, Vice President
Norm Lind, Vice President
Scott Orr, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress (registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(REGISTERED TRADEMARK)

FLORIDA
MUNICIPAL
FUNDS

SEMIANNUAL REPORT
MAY 31, 1998
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.

SPARTAN FLORIDA MUNICIPAL INCOME FUND

PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 7 THE MANAGERS' REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 10 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.

INVESTMENTS 11 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.

FINANCIAL STATEMENTS 20 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

PERFORMANCE 24 HOW THE FUND HAS DONE OVER TIME.

FUND TALK 26 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.

INVESTMENT CHANGES 28 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.

INVESTMENTS 29 A COMPLETE LIST OF THE FUND'S INVESTMENTS.

FINANCIAL STATEMENTS 36 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.

NOTES 40 NOTES TO THE FINANCIAL STATEMENTS.

PROXY VOTING RESULTS 44

</TABLE>

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY
THE FDIC, FEDERAL RESERVE BOARD,OR ANY OTHER AGENCY, AND ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE

(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
While low interest rates and subdued inflation provided support for
stock and bond markets in the U.S. during the first five months of
1998, concerns about continuing economic and political difficulties in
Asia colored their performance. The stock market reached record
heights due to stronger-than-expected corporate earnings, but
retreated at times when concerns surfaced about how the Asian
volatility would affect business prospects. The bond market benefited
from these retreats, as investors sought alternatives offering lower
volatility.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while a short-term bond fund could be
the right choice if you need your money in one or two years.
If your time horizon is less than a year, you might want to consider
moving some of your bond investment into a money market fund. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d

SPARTAN FLORIDA MUNICIPAL INCOME FUND

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the past five year and life of
fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN FL MUNICIPAL INCOME 3.57% 8.99% 37.56% 63.64%

LB FLORIDA MUNICIPAL BOND 3.66% 9.28% N/A N/A

FLORIDA MUNICIPAL DEBT FUNDS AVERAGE 3.57% 9.03% 33.57% N/A

CUMULATIVE TOTAL RETURNS show the fund's performance over a set period
- - in this case, six months, one year, five years or since the fund
started on March 16, 1992. For example, if you had invested $1,000 in
a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Lehman Brothers Florida Municipal Bond Index - a
total return performance benchmark for Florida investment-grade
municipal bonds with maturities of at least one year. To measure how
the fund's performance stacked up against its peers, you can compare
it to the Florida municipal debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past six months average represents a
peer group of 62 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN FL MUNICIPAL INCOME 8.99% 6.59% 8.25%

LB FLORIDA MUNICIPAL BOND 9.28% N/A N/A

FLORIDA MUNICIPAL DEBT FUNDS AVERAGE 9.03% 5.95% N/A

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a slightly different figure than
that obtained by averaging the cumulative total returns by annualizing
the result.)
$10,000 OVER LIFE OF FUND
Spartan FL Muni Income LB Municipal Bond
00427 LB015
1992/03/31 10000.00 10000.00
1992/04/30 10172.61 10089.00
1992/05/31 10350.03 10207.75
1992/06/30 10575.20 10379.03
1992/07/31 11028.26 10690.20
1992/08/31 10779.40 10585.97
1992/09/30 10823.45 10655.20
1992/10/31 10580.52 10550.46
1992/11/30 10944.39 10739.42
1992/12/31 11095.24 10849.07
1993/01/31 11245.75 10975.24
1993/02/28 11812.46 11372.22
1993/03/31 11626.24 11252.01
1993/04/30 11765.70 11365.54
1993/05/31 11841.80 11429.42
1993/06/30 12066.54 11620.18
1993/07/31 12101.29 11635.40
1993/08/31 12393.62 11877.65
1993/09/30 12566.59 12012.93
1993/10/31 12600.06 12036.12
1993/11/30 12423.65 11930.08
1993/12/31 12745.45 12181.92
1994/01/31 12914.00 12321.04
1994/02/28 12524.91 12001.93
1994/03/31 11935.22 11513.21
1994/04/30 12024.45 11610.84
1994/05/31 12139.04 11711.51
1994/06/30 12056.43 11639.95
1994/07/31 12310.26 11853.31
1994/08/31 12320.58 11894.32
1994/09/30 12130.96 11719.71
1994/10/31 11814.13 11511.57
1994/11/30 11530.36 11303.44
1994/12/31 11886.42 11552.23
1995/01/31 12279.67 11882.39
1995/02/28 12704.70 12227.93
1995/03/31 12848.58 12368.43
1995/04/30 12858.11 12383.03
1995/05/31 13293.09 12778.17
1995/06/30 13130.49 12667.00
1995/07/31 13237.10 12787.08
1995/08/31 13405.68 12949.22
1995/09/30 13499.13 13031.19
1995/10/31 13706.26 13220.67
1995/11/30 13961.59 13440.00
1995/12/31 14100.58 13569.15
1996/01/31 14182.96 13671.60
1996/02/29 14061.09 13579.32
1996/03/31 13892.16 13405.77
1996/04/30 13847.66 13367.84
1996/05/31 13843.25 13362.49
1996/06/30 14002.86 13508.01
1996/07/31 14127.09 13630.93
1996/08/31 14122.39 13627.66
1996/09/30 14310.34 13818.45
1996/10/31 14461.71 13974.73
1996/11/30 14742.11 14230.47
1996/12/31 14658.38 14170.70
1997/01/31 14692.85 14197.48
1997/02/28 14827.51 14327.82
1997/03/31 14596.62 14136.83
1997/04/30 14723.54 14255.15
1997/05/31 14946.39 14469.55
1997/06/30 15099.85 14623.65
1997/07/31 15539.17 15028.73
1997/08/31 15369.96 14887.91
1997/09/30 15538.41 15064.63
1997/10/31 15627.27 15161.49
1997/11/30 15728.03 15250.64
1997/12/31 15941.23 15473.15
1998/01/31 16156.40 15632.83
1998/02/28 16143.45 15637.52
1998/03/31 16136.19 15651.28
1998/04/30 16043.28 15580.69
1998/05/29 16284.98 15827.34
IMATRL PRASUN SHR__CHT 19980531 19980612 104112 R00000000000077
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Spartan Florida Municipal Income Fund on March 31, 1992,
shortly after the fund started. As the chart shows, by May 31, 1998,
the value of the investment would have grown to $16,290 - a 62.90%
increase on the initial investment. For comparison, look at how the
Lehman Brothers Municipal Bond Index - a total return performance
benchmark for investment-grade municipal bonds with maturities of at
least one year - did over the same period. With dividends and capital
gains, if any, reinvested, the same $10,000 would have grown to
$15,827 - a 58.27% increase.

UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY IS
NO GUARANTEE OF HOW IT WILL
DO TOMORROW. BOND PRICES,
FOR EXAMPLE, GENERALLY MOVE
IN THE OPPOSITE DIRECTION OF
INTEREST RATES. IN TURN, THE SHARE
PRICE, RETURN AND YIELD OF A
FUND THAT INVESTS IN BONDS WILL
VARY. THAT MEANS IF YOU SELL
YOUR SHARES DURING A MARKET
DOWNTURN, YOU MIGHT LOSE
MONEY. BUT IF YOU CAN RIDE
OUT THE MARKET'S UPS AND
DOWNS, YOU MAY HAVE A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31,

1998 1997 1996 1995 1994 1993

DIVIDEND RETURN 2.34% 5.00% 5.10% 6.31% 5.01% 6.10%

CAPITAL RETURN 1.23% 1.69% 0.49% 14.78% -12.20% 7.42%

TOTAL RETURN 3.57% 6.69% 5.59% 21.09% -7.19% 13.52%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 4.50(CENTS) 26.40(CENTS) 53.07(CENTS)

ANNUALIZED DIVIDEND RATE 4.63% 4.60% 4.65%

30-DAY ANNUALIZED YIELD 4.17% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 6.52% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$11.44 over the past one month, $11.50 over the past six months and
$11.41 over the past one year, you can compare the fund's income over
these three periods. The 30-day annualized YIELD is a standard formula
for all funds based on the yields of the bonds in the fund, averaged
over the past 30 days. This figure shows you the yield characteristics
of the fund's investments at the end of the period. It also helps you
compare funds from different companies on an equal basis. The
tax-equivalent yield shows what you would have to earn on a taxable
investment to equal the fund's tax-free yield if you're in the 36%
1998 federal tax bracket, but does not reflect payment of the federal
alternative minimum tax, if applicable.

SPARTAN FLORIDA MUNICIPAL INCOME FUND

FUND TALK: THE MANAGERS' OVERVIEW

MARKET RECAP
Investor sentiment, shifting supply
and demand conditions, and
volatility in Asia played key roles
in the municipal bond market during
the six months that ended May 31,
1998. During this period, the
Lehman Brothers Municipal Bond
Index - a measure of the municipal
bond market - returned 3.78%.
To compare, the Lehman Brothers
Aggregate Bond Index - a
measure of the investment-grade
taxable bond market in the U.S. -
returned 4.09%. In late 1997,
volatility in Asia helped prop up the
muni bond market. Investors felt that
currency devaluations in that region
would translate into cheaper prices
for Asian goods and help control
the inflation that can eat into bonds'
fixed payments. Since the beginning
of 1998, though, muni bond supply
increased as many issuers took
advantage of lower interest rates
to refinance their debt at lower rates.
That, combined with softening
demand, dampened the
performance of muni bonds in
early 1998. On top of that, the
municipal bond market
experienced extremely heavy
issuance in March and April, as
issuers rushed to market before the
largest deal in municipal market
history took place in May - a
$3.5 billion issuance by Long Island
Power Authority. This heavy
supply, coupled with only
intermittent demand, put
downward pressure on municipal
bonds in April. Renewed fears of
economic and political dislocation in
Asia attracted investors to all
sectors of the bond market in May,
but, overall, municipals lagged
taxable issues through the first
five months of 1998.
NOTE TO SHAREHOLDERS: Effective July 13, 1998, after the period
covered by this report, Christine Thompson became Portfolio Manager of
Spartan Florida Municipal Income Fund. The following is an interview
with Jonathan Short, who managed the fund during the period covered by
this report, and Christine Thompson, who gives her outlook and
discusses her investment approach.
Q. HOW DID THE FUND PERFORM, JON?
J.S. For the six-month period that ended May 31, 1998, the fund had a
total return of 3.57%. To get a sense of how the fund did relative to
its competitors, the Florida municipal debt funds average returned
3.57% for the same six-month period, according to Lipper Analytical
Services. Additionally, the Lehman Brothers Florida Municipal Bond
Index - a measure of the performance of the Florida municipal bond
market - returned 3.66% for the same six-month period. For the 12
months that ended May 31, 1998, the fund returned 8.99%, while the
Florida municipal debt funds average returned 9.03% and the Lehman
Brothers Florida Municipal Bond Index returned 9.28%.
Q. WHICH OF THE FUND'S INVESTMENTS PERFORMED PARTICULARLY WELL DURING
THE PAST SIX MONTHS? WHICH DETRACTED FROM PERFORMANCE?
J.S. Bonds rated Baa by Moody's Investors Services performed extremely
well throughout the period and helped the fund's performance. Faced
with falling interest rates, yield-hungry investors increasingly
sought out these bonds because they offered a yield advantage over
higher-quality bonds. What's more, there was a very small supply of
these bonds during the period. Strong demand pushed up against low
supply and boosted the prices of most Baa-rated bonds. As for
disappointments, housing bonds - which made up 2.3% of the fund's
investments at the end of the period - lagged the overall Florida
municipal market. Housing bonds experienced increased prepayment
activity when interest rates fell, because mortgage borrowers
refinanced their debt in order to lower their interest costs. While
prepayment is good for the borrower, it can be bad for housing bond
holders because it can force them to reinvest at lower interest rates.
However, the fund continued to hold on to most of the fund's housing
bonds because they carried attractive yields.
Q. WERE THERE ANY CHANGES IN THE WAY THE FUND'S INVESTMENTS WERE
ALLOCATED AMONG BONDS WITH VARIOUS MATURITIES?
J.S. Yes, there were. The fund increasingly emphasized bonds in the
intermediate market - meaning bonds with maturities of around five to
15 years. That was done because the yield curve - which is a graphical
representation of the yield of bonds by ascending maturity dates - was
relatively flat beyond 15 years. Up to about a 15-year maturity, an
investor was paid an appropriate amount of added income for each
additional year of maturity. It is this additional income that
compensates the investor for the added risk taken on by investing in
the longer-maturity part of the market. But for bonds with maturities
of 15 years or longer, the extra income for each successive year was
less attractive given the level of risk inherent in longer-term bonds.
Throughout the period, the fund's duration - which measures its
sensitivity to changing interest rates - was kept in line with the
Florida municipal bond market as a whole, as represented by the Lehman
Brothers Florida Municipal Bond Index.
Q. TURNING TO YOU CHRISTINE, WHAT'S YOUR OUTLOOK?
A. Municipals lagged taxable bonds throughout much of the past six
months, and, as a result, currently are priced inexpensively compared
to U.S. Treasury securities, for example. Municipals became cheap
relative to their Treasury counterparts because of a supply and demand
imbalance. In the first five months of 1998, the supply of municipals
was actually quite large compared to previous years, while the U.S.
budgetary surplus has decreased the supply of Treasuries
significantly. Cities, states, counties and other issuers sought to
take advantage of relatively low interest rates to refinance their
older, more expensive debt. As more and more of these refinancings
occurred, the supply of municipal bonds grew. On the other side of the
equation, demand - while remaining firm - didn't keep pace with the
additional supply. In my view, municipals may now be poised to play
catch-up with Treasuries and could be in for a period of relatively
good performance. For the remainder of the year, I expect that
municipal refinancing activity will taper off, which would likely be a
positive for municipal bonds as long as demand remains firm or
increases.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGERS ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGERS' VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

CHRISTINE THOMPSON ON HER
INVESTMENT APPROACH:
"My investment approach is
similar to the previous manager's,
so I don't anticipate making any
significant changes to the fund.
Like Jonathan, I use the Lehman
Brothers Florida Municipal Bond
Index as a representation of the
overall market in which the fund
invests. The index includes most
of the universe of Florida
municipal bonds. I manage the
fund to have similar overall
interest-rate risk to its benchmark
index, but, beyond that, the fund
can vary significantly from the
index. With respect to sector, issuer
and structural composition, the
fund's holdings reflect my
research conclusions on the
relative value of bonds."
FUND FACTS
GOAL: high current tax-free
income and exemption from
the Florida intangible tax by
normally investing in
investment-grade municipal
securities
FUND NUMBER: 427
TRADING SYMBOL: FFLIX
START DATE: March 16, 1992
SIZE: as of May 31, 1998,
more than $431 million
MANAGER: Christine Thompson,
since July 13, 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
(checkmark)

SPARTAN FLORIDA MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO

TRANSPORTATION 16.1 15.6

ELECTRIC REVENUE 15.7 15.1

HEALTH CARE 15.4 17.2

ESCROWED/PRE-REFUNDED 10.4 6.0

SPECIAL TAX 10.4 10.2

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1998
6 MONTHS AGO

YEARS 12.0 12.2

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF MAY 31, 1998
6 MONTHS AGO

YEARS 6.7 6.9

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
AAA 64.2%
AA, A 17.8%
BAA 10.5%
NON-RATED 3.5%
SHORT-TERM
INVESTMENTS 4.0%
AAA 58.5%
AA, A 20.0%
BAA 10.4%
NON-RATED 3.8%
SHORT-TERM
INVESTMENTS 7.3%
ROW: 1, COL: 1, VALUE: 64.2
ROW: 1, COL: 2, VALUE: 17.8
ROW: 1, COL: 3, VALUE: 10.5
ROW: 1, COL: 4, VALUE: 3.5
ROW: 1, COL: 5, VALUE: 4.0
ROW: 1, COL: 6, VALUE: 4.0
ROW: 1, COL: 1, VALUE: 58.5
ROW: 1, COL: 2, VALUE: 20.0
ROW: 1, COL: 3, VALUE: 10.4
ROW: 1, COL: 4, VALUE: 3.8
ROW: 1, COL: 5, VALUE: 7.3
ROW: 1, COL: 6, VALUE: 0.0
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN FLORIDA MUNICIPAL INCOME FUND

INVESTMENTS MAY 31, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS

MUNICIPAL BONDS - 96.0%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - 94.7%
Alachua County Health Facs. Auth. Health Facs.
Rev. Rfdg. (Santa Fe Health Care Facs. Proj.):
6% 11/15/09 (Escrowed to Maturity) (d) Baa1 $ 2,950,000 $ 3,195,647
6.05% 11/15/09 (Escrowed to Maturity) (d) Baa1 6,230,000
6,892,498
Broward County Hsg. Fin. Auth. Single-Family
Mtg. Rev. 6.65% 8/1/21 (GNMA Coll.) (c) Aaa 1,225,000 1,323,000
Broward County Resource Recovery Rev. (SES
Broward Co. LP South Proj.) 7.95% 12/1/08 A3 10,770,000 11,614,907
Broward County Spl. Oblig. Rfdg.:
5.50% 1/1/02 (AMBAC Insured) Aaa 1,365,000 1,427,476
5.50% 1/1/04 (AMBAC Insured) Aaa 2,320,000 2,464,420
5.50% 1/1/05 (AMBAC Insured) Aaa 2,585,000 2,756,230
Dade County Aviation Rev. Rfdg.:
(Miami Int'l. Arpt.):
Series A
5.75% 10/1/03 (FSA Insured) (c) Aaa 1,800,000 1,919,844
5.75% 10/1/04 (FSA Insured) (c) Aaa 5,000,000 5,374,100
Series B, 5% 10/1/11 (FSA Insured) (c) Aaa 3,300,000 3,332,637
Series B, 6.30% 10/1/05 (AMBAC Insured) Aaa 1,200,000 1,359,924
Series C, 5.50% 10/1/11 (MBIA Insured) Aaa 5,200,000 5,556,772
Series Y, 5.30% 10/1/05 Aa3 3,460,000 3,670,956
Dade County Gen. Oblig.:
Series A, 6.25% 10/1/06 (MBIA Insured) Aaa 1,575,000 1,778,931
Series DD, 7.70% 10/1/07 (AMBAC Insured) Aaa 1,820,000 2,271,415
Dade County Guaranteed Entitlement Rev.
(Cap. Appreciation) Series B:
Rfdg. 0% 2/1/02 (MBIA Insured) Aaa 1,810,000 1,547,822
0% 8/1/18 (AMBAC Insured)
(Pre-Refunded to 2/1/06 @ 40.446) (d) Aaa 14,835,000 4,282,568
Dade County Pub. Impt. Rev. 7.50% 6/1/04
(FSA Insured) (e) Aaa 2,400,000 2,811,480
Dade County Resource Recovery Facs. Rev. Rfdg.
5.50% 10/1/09 (AMBAC Insured) (c) Aaa 4,000,000 4,223,960
Dade County Seaport Rev. Rfdg.:
6.25% 10/1/05 (MBIA Insured) Aaa 2,995,000 3,352,783
6.50% 10/1/26 (Pre-Refunded to
10/1/01 @ 101) (AMBAC Insured) (d) Aaa 7,500,000 8,156,175
Series 95:
6.20% 10/1/09 (MBIA Insured) Aaa 1,845,000 2,116,750
5.75% 10/1/15 (MBIA Insured) Aaa 5,100,000 5,473,932
Dade County School Dist. Rev. 5.50%
8/1/12 (MBIA Insured) Aaa 2,000,000 2,102,580
Dade County Spl. Oblig. Rev. Rfdg. (Cap.
Appreciation) Series B:
0% 10/1/03 (AMBAC Insured) Aaa 4,160,000 3,300,710
0% 10/1/04 (AMBAC Insured)
(Escrowed to Maturity) (d) Aaa 5,045,000 3,842,322
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Dade County Wtr. & Swr. Sys. Rev. :
6.25% 10/1/06 (FGIC Insured) Aaa $ 1,500,000 $ 1,694,220
6.25% 10/1/08 (FGIC Insured) Aaa 1,100,000 1,257,135
6.25% 10/1/10 (FGIC Insured) Aaa 1,000,000 1,158,750
Dunedin Hosp. Rev. Rfdg. (Mease Health
Care Sys.) 5.25% 11/15/06 (MBIA Insured) Aaa 1,400,000 1,477,518
Dunedin Util Sys. Rev. Rfdg. 6.25% 10/1/11
(FGIC Insured) Aaa 1,360,000 1,576,961
Duval County Hsg. Fin. Auth. Single-Family Mtg.
Rev. Series C, 7.70% 9/1/24 (FGIC Insured)
(GNMA Coll.) Aaa 570,000 605,334
Duval County School Dist. Rfdg. 6.30% 8/1/06
(AMBAC Insured) Aaa 5,000,000 5,470,500
Escambia County Health Facs. Auth. Health Facs.
Rev. Rfdg. (Baptist Hosp. & Baptist Manor)
Series B:
6% 10/1/14 BBB+ 2,825,000 2,969,781
6.75% 10/1/14 BBB+ 3,250,000 3,595,800
Escambia County Poll. Cont. Rev.
(Champion Int'l. Corp. Proj.) :
6.90% 8/1/22 (c) Baa1 6,125,000 6,755,814
6.40% 9/1/30 (c) Baa1 3,000,000 3,257,220
Escambia County Sales Tax Rev. Rfdg.
5.50% 1/1/07 (FGIC Insured) Aaa 2,000,000 2,130,640
Escambia County Util. Auth. Util. Sys. Rev.
Series B, 6.25% 1/1/15 (FGIC Insured) Aaa 1,500,000 1,727,940
Florida Board of Ed. Cap. Outlay (Pub. Ed.):
Series 1994-C, 5.40% 6/1/03 Aa2 1,060,000 1,118,374
Series 1994-C, 5.40% 6/1/06 Aa2 1,500,000 1,604,265
Series E, 5.25% 6/1/23 Aa2 1,750,000 1,760,308
Series F, 5.50% 6/1/17 Aa2 3,000,000 3,095,040
Florida Div. Board Fin. Dept. Gen. Svcs. Rev.
(Dept. of Natural Resources Preservation 2000)
Series A:
5.75% 7/1/05 (FGIC Insured) Aaa 3,000,000 3,257,250
6.75% 7/1/08 (AMBAC Insured)
(Pre-Refunded to 7/1/01 @ 102) (d) Aaa 1,350,000 1,480,343
5.70% 7/1/09 (AMBAC Insured) Aaa 3,000,000 3,209,670
5.75% 7/1/11 (AMBAC Insured) Aaa 3,000,000 3,226,140
Florida Gen. Oblig. Dept. of Trans.
(Right of Way) Series B, 5.50% 7/1/09 Aa2 3,810,000 4,082,301
Florida Gen. Oblig. Senior Lien (Jacksonville
Trans.) Series A, 5.75% 7/1/04 Aa2 1,955,000 2,114,626
Florida Hsg. Fin. Agcy. Rfdg. (Multi-Family Park
Colony Proj.) Series D, 5.10% 4/1/13,
LOC Mellon Bank, NA AA- 2,500,000 2,533,725
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Hsg. Fin. Agcy. Rfdg. (Single-Family Mtg.)
Series A:
6.35% 7/1/14 (GNMA Coll.) (c) Aaa $ 1,210,000 $ 1,295,027
6.55% 7/1/14 (GNMA Coll.) (c) Aaa 1,405,000 1,518,608
Series B, 6.55% 7/1/17 (GNMA
Coll.) (c) Aaa 1,210,000 1,300,919
Florida Mid-Bay Bridge Auth. Rev. Series A:
7.50% 10/1/17 - 1,700,000 1,874,114
6.875% 10/1/22 (Escrowed to Maturity) (d) - 3,000,000 3,713,970
Florida Muni. Pwr. Agcy. Rev. Rfdg.
(Stanton II Proj.):
4.50% 10/1/16 (AMBAC Insured) Aaa 4,400,000 4,107,092
4.50% 10/1/27 (AMBAC Insured) Aaa 7,955,000 7,155,363
Florida Tpk. Auth. Tpk. Rev. (Dept. of Trans.):
Series A:
5.50% 7/1/05 (AMBAC Insured) Aaa 3,250,000 3,479,580
5.50% 7/1/06 (AMBAC Insured) Aaa 3,000,000 3,245,550
5.25% 7/1/09 (FGIC Insured) Aaa 6,740,000 7,086,436
6.25% 7/1/09 (FGIC Insured)
(Pre-Refunded to 7/1/02 @ 101) (d) Aaa 1,825,000 1,986,348
5.50% 7/1/14 (FGIC Insured) Aaa 1,500,000 1,584,135
Gainesville Util. Sys. Rev.:
Rfdg. Series B, 6.50% 10/1/10 Aa3 1,600,000 1,881,488
Rfdg. Series B, 5.50% 10/1/13 Aa3 1,500,000 1,566,000
Series A, 5.75% 10/1/04 Aa 1,000,000 1,079,990
Greater Orlando Aviation Auth. Aprt. Facs. Rev.:
Series A, 6.50% 10/1/05 (FGIC Insured) (c) Aaa 3,550,000 3,941,068
5.25% 10/1/23 (FGIC Insured) (c) Aaa 3,000,000 3,008,730
Hillsborough County Aviation Auth. Rev.
(Tampa Int'l. Arpt. Proj.) Series A:
6.90% 10/1/11 (Pre-Refunded to
10/1/99 @ 102) (FGIC Insured) (d) Aaa 1,980,000 2,094,404
6.90% 10/1/11 (FGIC Insured) Aaa 2,270,000 2,399,935
Hillsborough County Cap. Impt. Prog. Rev. Rfdg.
6% 8/1/06 (FGIC Insured) Aaa 1,000,000 1,110,280
Hillsborough County Gen. Oblig. Rfdg.
(Envir. Sensitive Lands Acquisition & Protection)
6% 7/1/02 (AMBAC Insured) Aaa 2,080,000 2,227,555
Hillsborough County Port Dist. Spl. Rev. Rfdg.
(Tampa Port Auth.):
6.50% 6/1/03 (FSA Insured) (c) Aaa 2,000,000 2,192,420
6.50% 6/1/05 (FSA Insured) (c) Aaa 2,000,000 2,240,340
Hillsborough County School Board Ctfs. of Prtn.
(Master Lease Prog.) 5.50% 7/1/14
(MBIA Insured) Aaa 4,370,000 4,694,167
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Hillsborough County Util. Rev. Rfdg.
(Cap. Appreciation) Series A:
0% 8/1/05 (MBIA Insured) Aaa $ 6,500,000 $ 4,734,665
0% 8/1/06 (MBIA Insured) Aaa 5,000,000 3,457,200
0% 8/1/07 (MBIA Insured) Aaa 7,000,000 4,606,000
Indian River County Wtr. & Swr. Rev. Rfdg.
Series A, 5.50% 9/1/11 (FGIC Insured) Aaa 2,000,000 2,170,280
Jacksonville Elec. Auth. Rev. Rfdg.
(St. John River Issue 2):
Series 5, 7% 10/1/09 Aa2 2,490,000 2,621,572
Series 10, 6.50% 10/1/03 Aa2 1,500,000 1,662,405
Jacksonville Excise Taxes Rev.:
Rfdg. 6.25% 10/1/05 (AMBAC Insured) Aaa 1,000,000 1,094,480
Series A, 6.50% 10/1/11 (AMBAC Insured)
(Pre-Refunded to 10/1/99 @ 102) (d) Aaa 1,200,000 1,263,984
Series B, 5.60% 10/1/08 (FGIC Insured) (c) Aaa 2,300,000 2,376,866
Jacksonville Health Facs. Auth. Hosp. Rev.:
(Charity Obligated Group) Series A:
5.50% 8/15/05 (MBIA Insured) Aaa 1,600,000 1,711,600
5.25% 8/15/08 (MBIA Insured) Aaa 3,720,000 3,928,804
Rfdg. (Baptist Med. Ctr. Proj.) Series A,
7.30 6/1/19 (MBIA Insured)
(Pre-Refunded to 6/1/99 @ 102) (d) Aaa 500,000 526,700
Jacksonville Health Facs. Auth. Ind. Dev. Rev. Rfdg.
(Cypress Village Proj.) (Nat'l. Benevolent Assoc.):
7% 12/1/14 Baa1 1,000,000 1,105,040
7% 12/1/22 Baa1 2,000,000 2,209,220
6.25% 12/1/23 Baa1 2,710,000 2,902,139
8% 12/1/24 Baa1 2,740,000 3,220,706
Jacksonville Ind. Dev. Rev. Rfdg. (Cargill, Inc.
Proj.) 6.40% 3/1/11 (g) AA- 1,250,000 1,341,738
Jacksonville Sales Tax Rev.
(River City Renaissance Proj.):
6% 10/1/02 (FGIC Insured) Aaa 1,500,000 1,609,365
5.65% 10/1/14 (FGIC Insured) Aaa 1,900,000 2,012,613
Key West Util. Board Elec. Rev. Rfdg.
(Cap. Appreciation) 0% 10/1/14
(AMBAC Insured) Aaa 6,755,000 2,978,820
Lakeland Elec. & Wtr. Rev.:
Rfdg. (Jr. Sub-Lien):
6.25% 10/1/02 (FGIC Insured) Aaa 5,180,000 5,608,541
6.50% 10/1/06 (FGIC Insured) Aaa 2,200,000 2,524,566
6.50% 10/1/07 (FGIC Insured) Aaa 1,095,000 1,267,014
(Cap. Appreciation) 0% 10/1/09
(FGIC Insured) Aaa 2,840,000 1,681,820
Leesburg Hosp. Rev. Rfdg.
(Leesburg Reg'l. Med. Ctr. Proj.) :
Series A, 5.60% 7/1/08 A3 5,000,000 5,289,650
Series B, 5.625% 7/1/13 A3 2,795,000 2,882,651
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Leon County Cap. Impt. Rev. Rfdg. Series B:
5.25% 10/1/03 (AMBAC Insured) (e) Aaa $ 1,635,000 $ 1,676,333
5.25% 10/1/04 (AMBAC Insured) (e) Aaa 1,720,000 1,766,148
5.25% 10/1/08 (AMBAC Insured) (e) Aaa 2,115,000 2,166,458
5.25% 10/1/09 (AMBAC Insured) (e) Aaa 2,225,000 2,283,295
5.25% 10/1/11 (AMBAC Insured) (e) Aaa 2,465,000 2,511,539
Leon County Spl. Tax Rev. Rfdg. 5.50% 10/1/07
(MBIA Insured) Aaa 1,000,000 1,081,300
Melbourne Arpt. Rev. Rfdg.:
5.75% 10/1/98 (MBIA Insured) (c) Aaa 205,000 206,396
5.75% 10/1/99 (MBIA Insured) (c) Aaa 215,000 219,747
6.25% 10/1/00 (MBIA Insured) (c) Aaa 230,000 240,750
6.25% 10/1/01 (MBIA Insured) (c) Aaa 240,000 255,036
6.25% 10/1/02 (MBIA Insured) (c) Aaa 260,000 280,015
6.25% 10/1/03 (MBIA Insured) (c) Aaa 270,000 294,473
6.50% 10/1/04 (MBIA Insured) (c) Aaa 290,000 323,782
6.50% 10/1/05 (MBIA Insured) (c) Aaa 310,000 351,025
6.50% 10/1/06 (MBIA Insured) (c) Aaa 325,000 369,298
6.75% 10/1/07 (MBIA Insured) (c) Aaa 350,000 407,530
6.75% 10/1/08 (MBIA Insured) (c) Aaa 375,000 439,178
6.75% 10/1/09 (MBIA Insured) (c) Aaa 400,000 472,400
6.75% 10/1/10 (MBIA Insured) (c) Aaa 425,000 506,133
Naples Hosp. Rev. Rfdg.
(Naples Commty. Hosp., Inc. Proj.)
5.10% 10/1/07 (MBIA Insured) Aaa 1,500,000 1,554,615
North Broward Hosp. Dist. Hosp. Rev. Rfdg.
6.40% 1/1/06 (MBIA Insured)
(Pre-Refunded to 1/1/02 @ 102) (d) Aaa 950,000 1,038,417
North Miami Edl. Facs. Rev.
(Johnson & Wales Univ. Proj.)
Series A, 6.125% 4/1/20 - 6,605,000 6,898,526
Orange County Health Facs. Auth. Hosp. Rev.:
(Orlando Reg'l. Healthcare) Series A,
6.25% 10/1/18 (MBIA Insured) Aaa 2,500,000 2,903,150
Rfdg. (Adventist Health Sys.) 5.75% 11/15/05
(AMBAC Insured) Aaa 2,000,000 2,166,040
Orange County Hsg. Fin. Auth. Single-Family
Mtg. Rev. (Mtg. Backed Securities Prog.)
6.40% 10/1/14 (GMNA Coll.) (c) AAA 1,465,000 1,581,790
Orange County Tourist Dev. Tax Rev. Rfdg.
Series A, 5.85% 10/1/08 (MBIA Insured) Aaa 1,795,000 1,992,594
Orlando & Orange County Expressway Auth.
Rev. 5.097% 7/1/04 (FGIC Insured) Aaa 2,200,000 2,296,910
Orlando Util. Commission Wtr. & Elec. Rev.:
Rfdg.:
6% 10/1/10 Aa1 2,505,000 2,828,846
Sub-Series A, 5% 10/1/20 Aa2 5,745,000 5,623,838
Sub-Series D, 6.75% 10/1/17 Aa2 7,000,000 8,487,430
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Orlando Util. Commission Wtr. & Elec. Rev.: - continued
Sub-Series A, 6.50% 10/1/20
(Pre-Refunded to 10/1/01 @ 102) (d) Aaa $ 5,055,000 $ 5,533,355
5.538% 10/31/13 Aa2 9,400,000 9,759,174
Palm Beach County Health Facs. Auth. Rev.:
(Retirement Commty.-Adult Commty. Total
Svc. Inc.) 5.625% 11/15/20 A- 2,500,000 2,583,650
(Waterford Proj.) 5.50% 10/1/15 BBB 2,000,000 2,006,920
Pasco County Solid Waste Disp. & Resource
Recovery Sys. Rev.:
5.75% 4/1/04 (AMBAC Insured) (c) Aaa 3,380,000 3,615,011
6% 4/1/10 (AMBAC Insured) (c) Aaa 5,770,000 6,442,551
6% 4/1/11 (AMBAC Insured) (c) Aaa 5,000,000 5,578,350
Pensacola Arpt. Rev. Rfdg. Series A,
6.125% 10/1/18 (MBIA Insured) (c)(e) Aaa 1,500,000 1,621,680
Plantation Health Facs. Auth. Rev.
(Covenant Retirement Commty. Inc.)
7.75% 12/1/22 (Pre-Refunded to
12/1/02 @ 102) (d) - 2,500,000 2,907,125
Polk County Ind. Dev. Auth. Ind. Dev. Rev.
(Winter Haven Hosp.) Series 2,
6.25% 9/1/15 (MBIA Insured) Aaa 1,465,000 1,595,693
Sarasota County Util. Sys. Rev. Rfdg. Series A,
6% 10/1/05 (FGIC Insured) Aaa 1,830,000 2,020,137
Sarasota Wtr. & Swr. Util. Rev. Rfdg.
6.25% 10/1/04 (FGIC Insured) Aaa 1,450,000 1,610,907
South Miami Health Facs. Auth. Hosp. Rev. Rfdg.
(Baptist Health Sys. Oblig. Group)
5.50% 10/1/05 (MBIA Insured) Aaa 1,980,000 2,125,372
St. Lucie (Port of) Util. Rev. Rfdg. & Impt.
Series A, 5.125% 9/1/27 (MBIA Insured) Aaa 4,750,000 4,704,543
Sumter County School Dist. Rev.
(Multi-Dist. Loan Prog.) 7.15% 11/1/15
(FSA Insured) Aaa 1,000,000 1,256,130
Sunrise Util. Sys. Rev. (Cap. Appreciation)
Series A:
0% 10/1/00 (AMBAC Insured) Aaa 1,070,000 974,863
0% 10/1/01 (AMBAC Insured) Aaa 1,225,000 1,069,180
0% 10/1/02 (AMBAC Insured) Aaa 1,000,000 833,760
Sunshine Gov't. Fing. Commission Rev. Series B,
5.50% 10/1/05 (FGIC Insured) Aaa 1,000,000 1,072,770
Tampa Health Auth. Rev. (Catholic Health Sys.)
Series A-1:
5.50% 11/15/08 (MBIA Insured) Aaa 1,000,000 1,071,870
5% 11/15/09 (MBIA Insured) Aaa 1,000,000 1,028,630
4.70% 11/15/10 (MBIA Insured) Aaa 2,000,000 1,989,980
5.50% 11/15/14 (MBIA Insured) Aaa 1,000,000 1,061,280
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Tampa Rev. (Allegheny Health Sys. - St. Joseph):
6.70% 12/1/07 (MBIA Insured)
(Pre-Refunded to 12/1/01 @ 102) (d) Aaa $ 2,535,000 $ 2,800,288
6.75% 12/1/17 (MBIA Insured) Aaa 150,000 165,939
Tampa Sports Auth. Rev. 6% 1/1/05
(MBIA Insured) Aaa 2,235,000 2,446,453
Tarpon Springs Health Facs. Auth. Hosp. Rev.
(Helen Ellis Mem. Hosp. Proj.):
7.50% 5/1/11 BBB- 1,225,000 1,319,494
7.625% 5/1/21 BBB- 4,245,000 4,574,624
Volusia County Edl. Facs. Auth. Rev.
(Embry Riddle Aeronaut Univ.)
6.125% 10/15/16 Baa2 2,500,000 2,680,200
420,554,373
PUERTO RICO - 1.3%
Puerto Rico Elec. Pwr. Auth. Pwr. Rev.:
Rfdg. Series W, 6.50% 7/1/05 (MBIA Insured) Aaa 3,000,000
3,406,950
Series W, 6.50% 7/1/06 (MBIA Insured) Aaa 2,000,000 2,296,460
5,703,410
TOTAL MUNICIPAL BONDS
(Cost $403,401,858) 426,257,783
MUNICIPAL NOTES (B) - 4.0%
FLORIDA - 4.0%
Dade County Health Facs. Auth. Hosp. Rev.
(Miami Childrens Hosp. Proj.) Series 1990,
4%, LOC Barnett Bank, VRDN VMIG 1 400,000 400,000
Dade County Ind. Dev. Auth. Rev.
(Florida Pwr. & Lt. Co. Proj.) Series 1993,
4.05%, VRDN VMIG 1 900,000 900,000
Jacksonville Health Facs. Auth. Hosp. Rev.
(Genesis Rehabilitation Hosp.) Series 1996,
4.05%, LOC Barnett Bank, NA, VRDN VMIG 1 8,900,000 8,900,000
Martin County Poll. Cont. Rev. Rfdg.
(Florida Pwr. & Lt. Co. Proj.) Series 1994,
3.95%, VRDN A-1+ 2,400,000 2,400,000
Pinellas County Health Facs. Auth. Rev.
(Pooled Hosp. Loan Prog.) 4%,
LOC Chase Manhattan Bank, VRDN VMIG 1 1,800,000 1,800,000
MUNICIPAL NOTES (B) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Putnam County Poll. Cont. Rev. Rfdg.
(Florida Power & Light Co. Proj.)
3.95%, VRDN VMIG 1 $ 1,780,000 $ 1,780,000
Tampa Sports Auth. Rev. Participating VRDN,
Series 1997 SGA-61, 4% (Liquidity Facility
Societe Generale) (f) A-1+ 1,600,000 1,600,000
TOTAL MUNICIPAL NOTES
(Cost $17,780,000) 17,780,000
TOTAL INVESTMENTS - 100%
(Cost $421,181,858) $ 444,037,783
SECURITY TYPE ABBREVIATIONS
VRDN - Variable Rate Demand Notes
LEGEND
(a) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(d) Security collateralized by an amount sufficient to pay interest
and principal.
(e) Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
(f) Provides evidence of ownership in one or more underlying municipal
bonds.
(g) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION COST
SECURITY DATE
Jacksonville Ind. Dev.
Rev. Rfdg. (Cargill,
Inc. Proj.) 6.40%
3/1/11 7/9/92 $1,250,000
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding 144A issues) amounted to $1,341,738
or 0.3% of net assets (see Note 2 of the Notes to Financial
Statements).
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 80.2% AAA, AA, A 84.0%
Baa 7.3% BBB 4.8%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 3.5%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
Transportation 16.1%
Electric Revenue 15.7
Health Care 15.4
Escrowed/Pre-Refunded 10.4
Special Tax 10.4
General Obligation 9.6
Resource Recovery 7.8
Water & Sewer 7.6
Others (individually less than 5%) 7.0
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1998, the aggregate cost of investment securities for
income tax purposes was $421,214,123. Net unrealized appreciation
aggregated $22,823,660, of which $22,967,685 related to appreciated
investment securities and $144,025 related to depreciated investment
securities.
At November 30, 1997, the fund was required to defer approximately
$348,000 of losses on futures contracts.
SPARTAN FLORIDA MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $421,181,858) - $ 444,037,783
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR FUND SHARES SOLD 118,204

INTEREST RECEIVABLE 5,420,862

TOTAL ASSETS 449,576,849

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 105,553

PAYABLE FOR INVESTMENTS PURCHASED 2,655,585
REGULAR DELIVERY

DELAYED DELIVERY 14,574,584

PAYABLE FOR FUND SHARES REDEEMED 394,785

DISTRIBUTIONS PAYABLE 625,755

ACCRUED MANAGEMENT FEE 199,232

OTHER PAYABLES AND ACCRUED EXPENSES 2,757

TOTAL LIABILITIES 18,558,251

NET ASSETS $ 431,018,598

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 406,050,403

ACCUMULATED UNDISTRIBUTED NET REALIZED 2,112,270
GAIN (LOSS) ON INVESTMENTS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 22,855,925

NET ASSETS, FOR 37,462,419 SHARES OUTSTANDING $ 431,018,598

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $11.51
SHARE ($431,018,598 (DIVIDED BY) 37,462,419 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 10,913,847

EXPENSES

MANAGEMENT FEE $ 1,163,893

NON-INTERESTED TRUSTEES' COMPENSATION 883

TOTAL EXPENSES BEFORE REDUCTIONS 1,164,776

EXPENSE REDUCTIONS (7,569) 1,157,207

NET INTEREST INCOME 9,756,640

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 2,593,332

FUTURES CONTRACTS 131,347 2,724,679

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 2,197,107

FUTURES CONTRACTS (27,292) 2,169,815

NET GAIN (LOSS) 4,894,494

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 14,651,134
OPERATIONS

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 9,756,640 $ 18,929,649
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 2,724,679 3,031,450

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 2,169,815 3,539,368

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 14,651,134 25,500,467
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS (9,756,640) (18,929,649)
FROM NET INTEREST INCOME

FROM NET REALIZED GAIN (1,809,138) -

TOTAL DISTRIBUTIONS (11,565,778) (18,929,649)

SHARE TRANSACTIONS 40,843,594 58,696,099
NET PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS 7,402,831 11,745,882

COST OF SHARES REDEEMED (28,713,330) (59,766,704)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 19,533,095 10,675,277
FROM SHARE TRANSACTIONS

REDEMPTION FEES 9,384 14,605

TOTAL INCREASE (DECREASE) IN NET ASSETS 22,627,835 17,260,700

NET ASSETS

BEGINNING OF PERIOD 408,390,763 391,130,063

END OF PERIOD $ 431,018,598 $ 408,390,763

OTHER INFORMATION
SHARES

SOLD 3,549,234 5,240,127

ISSUED IN REINVESTMENT OF DISTRIBUTIONS 643,929 1,048,112

REDEEMED (2,498,687) (5,343,762)

NET INCREASE (DECREASE) 1,694,476 944,477

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED NOVEMBER 30,
MAY 31, 1998

(UNAUDITED) 1997 1996 1995 1994 F 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 11.420 $ 11.230 $ 11.180 $ 9.740 $ 11.290 $ 10.520
BEGINNING OF PERIOD

INCOME FROM INVEST- .264 .539 .546 .573 .587 .615
MENT OPERATIONS
NET INTEREST INCOME

NET REALIZED AND .140 .190 .054 1.439 (1.352) .777
UNREALIZED
GAIN (LOSS)

TOTAL FROM INVEST- .404 .729 .600 2.012 (.765) 1.392
MENT OPERATIONS

LESS DISTRIBUTIONS

FROM NET INTEREST (.264) (.539) (.546) (.573) (.587) (.615)
INCOME

FROM NET (.050) - (.005) - (.200) (.010)
REALIZED GAIN

TOTAL DISTRIBUTIONS (.314) (.539) (.551) (.573) (.787) (.625)

REDEMPTION FEES .000 .000 .001 .001 .002 .003
ADDED TO PAID IN
CAPITAL

NET ASSET VALUE, END $ 11.510 $ 11.420 $ 11.230 $ 11.180 $ 9.740 $ 11.290
OF PERIOD

TOTAL RETURN B, C 3.57% 6.69% 5.59% 21.09% (7.19)% 13.52%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF $ 431,019 $ 408,391 $ 391,130 $ 395,991 $ 335,551 $ 428,367
PERIOD
(000 OMITTED)

RATIO OF EXPENSES TO .55% A .55% .55% .55% .54% D .25% D
AVERAGE NET ASSETS

RATIO OF EXPENSES TO .55% A .55% .54% E .55% .54% .25%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INTEREST 4.61% A 4.81% 4.96% 5.37% 5.49% 5.52%
INCOME TO AVERAGE
NET ASSETS

PORTFOLIO TURNOVER RATE 30% A 25% 28% 65% 49% 50%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT INCLUDE THE FORMER ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
F EFFECTIVE DECEMBER 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

PERFORMANCE: THE BOTTOM LINE

To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and the effect of the $5 account closeout fee on an
average size account. Yield measures the income paid by a fund. Since
a money market fund tries to maintain a $1 share price, yield is an
important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and life of fund total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN FL MUNICIPAL MONEY MARKET 1.61% 3.32% 16.31% 18.73%

ALL TAX-FREE MONEY MARKET FUNDS AVERAGE 1.53% 3.13% 15.16% 17.23%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on August 24, 1992. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the all tax-free money market funds average, which reflects the
performance of mutual funds with similar objectives tracked by IBC
Financial Data, Inc. The past six months average represents a peer
group of 442 mutual funds. (The periods covered by the IBC Financial
Data, Inc. numbers are the closest available match to those covered by
the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN FL MUNICIPAL MONEY MARKET 3.32% 3.07% 3.02%

ALL TAX-FREE MONEY MARKET FUNDS AVERAGE 3.13% 2.86% 2.76%

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
6/1/98 3/2/98 12/1/97 9/1/97 6/2/97

SPARTAN FLORIDA MUNICIPAL 3.45% 3.07% 3.46% 3.09% 3.40%
MONEY MARKET FUND

ALL TAX-FREE MONEY MARKET 3.22% 2.92% 3.28% 2.98% 3.27%
FUNDS AVERAGE

SPARTAN FLORIDA MUNICIPAL 5.39% 4.80% 5.41% 4.83% 5.31%
MONEY MARKET FUND -
TAX-EQUIVALENT

COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However, a
straight comparison between the
two may be misleading because
it ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the tax-free
yield - makes the comparison
more meaningful. Keep in mind
that the U.S. government
neither insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money fund will maintain a $1
share price.
(checkmark)

SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Orr, Portfolio Manager of Spartan Florida
Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. Investors spent much of the period trying to determine when the
Federal Reserve Board might raise the fed funds rate - the rate banks
charge each other for overnight loans - as a way to slow the economy
and thus head off inflation. The economy continued to chug along at a
fairly strong pace and unemployment numbers were incredibly low -
coming in at 4.3% in April. But despite this period of continuing
expansion, wage pressures did not arise and inflation remained benign.
Under normal circumstances, the possibility of future inflation
created by these low unemployment numbers likely would have led the
Fed to raise rates. But the economic and political turmoil in Asia
kept the Fed on the sidelines during the period. In fact, the fed
funds rate has remained unchanged at 5.5% for the past year.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. For two reasons. The Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here, especially
considering the financial and political unrest in countries such as
Indonesia at the end of the period. An increase in short-term rates in
the U.S. would likely have strengthened the U.S. dollar even more
versus Asian currencies, which could have further hurt their markets.
In other words, the Fed was asking itself, "Why make the Asian markets
more volatile by raising rates in the U.S.?" The other factor was the
possibility that the Asian turmoil would have translated into a
reduction of U.S. net exports, which would likely have had a dampening
effect of its own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. A flood of money typically enters this fund at year-end because the
fund provides investors with a unique tax shelter from the Florida
intangible tax. Because of that factor, the fund began the period with
about $421 million in assets and its average maturity was about 33
days. One month later, on January 1, the fund's assets had more than
doubled to almost $1 billion. Because I expected that much of the
fund's new assets would not remain in the fund over the long term, I
invested in extremely short-term securities, such as daily and weekly
variable-rate notes and commercial paper that would mature in early
January. In early January, the fund's average maturity fell to as low
as 16 days. As of January 31, the fund's assets were back down to
about $545 million. During the rest of the period, I invested a
portion of the fund in out-of-state variable-rate paper that would
mature before December to take advantage of higher yields. The fund
must be fully invested in Florida securities by year-end. I also spent
much of the period seeking fixed-rate Florida securities that mature
after December 31, 1997. As a result of these two strategies, the
fund's average maturity was extended to 35 days at the end of the
period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1998, was 3.45%, compared to
3.47% six months ago. The more recent seven-day yield was the
equivalent of a 5.39% taxable rate of return for Florida investors in
the 36% federal income tax bracket. Through May 31, 1998, the fund's
six-month total return was 1.61%, compared to 1.53% for the all
tax-free money market funds average, according to IBC Financial Data,
Inc.
Q. WHAT'S YOUR OUTLOOK?
A. There's one important wildcard: what happens in Asia. If we
continue to see the same level of turmoil there, I believe the Fed may
be obligated to stay on the sidelines. There's a lot of risk that a
rate increase in the U.S. could cause increased volatility in global
markets. Without a rate increase, the U.S. economy still might slow as
a result of fewer U.S. exports. In this case, the Asian situation
would do the Fed's job for them. The strength of the U.S. economy, in
light of the Asian situation, has left the Fed at an impasse. And,
although I believe the next Fed move will be to raise rates, I don't
believe it will be any time soon. The only factor that could change
the Fed's stance in the next few months would be real signs of
inflation - wage pressures as reflected in the employment cost index
or higher-than-expected increases in the consumer price index or the
producer price index. At that point, the Fed may risk causing more
problems in Asia to keep the U.S. economy on good footing.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: HIGH CURRENT TAX-FREE
INCOME AND EXEMPTION FROM
THE FLORIDA INTANGIBLE TAX,
WHILE MAINTAINING A STABLE $1
SHARE PRICE BY INVESTING IN
HIGH-QUALITY, SHORT-TERM
MUNICIPAL MONEY MARKET
SECURITIES
FUND NUMBER: 428
TRADING SYMBOL: FSFXX
START DATE: AUGUST 24, 1992
SIZE: AS OF MAY 31, 1998,
MORE THAN $443 MILLION
MANAGER: SCOTT ORR, SINCE
1997; MANAGER, VARIOUS
FIDELITY AND SPARTAN MUNICIPAL
MONEY MARKET FUNDS; JOINED
FIDELITY IN 1989
(CHECKMARK)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/98 11/30/97 5/31/97

0 - 30 78 70 73

31 - 90 6 22 16

91 - 180 11 4 7

181 - 397 5 4 4

WEIGHTED AVERAGE MATURITY
5/31/98 11/30/97 5/31/97

SPARTAN FLORIDA MUNICIPAL
MONEY MARKET FUND 35 DAYS 33 DAYS 31 DAYS

ALL TAX-FREE MONEY MARKET
FUNDS AVERAGE* 36 DAYS 50 DAYS 38 DAYS

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
Row: 1, Col: 1, Value: 1.0
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 15.0
Row: 1, Col: 5, Value: 74.0
Row: 1, Col: 1, Value: 1.0
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 9.0
Row: 1, Col: 4, Value: 24.0
Row: 1, Col: 5, Value: 64.0
Variable rate
demand notes
(VRDNs) 74%
Commercial paper
(including CP
mode) 15%
Tender bonds 9%
Municipal
notes 1%
Other 1%
Variable rate
demand notes
(VRDNs) 64%
Commercial paper
(including CP
mode) 24%
Tender bonds 9%
Municipal
notes 2%
Other 1%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

INVESTMENTS MAY 31, 1998 (UNAUDITED)
Showing Percentage of Investment in Securities

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALABAMA - 0.3%
Phenix Ind. Dev. Envir. Impt. (Mead Coated Board Proj.)
Series 1996, 4.05%, LOC Bayerische Vereinsbank AG,
VRDN (b) $ 1,200,000 $ 1,200,000
ARKANSAS - 0.2%
Arkansas Dev. Fin. Auth. Multi-Family Hsg. Rev. (Kiehl
Partners LP Proj.) Series 1998, 4%, LOC Bank One,
Louisiana, NA, VRDN (b) 1,000,000 1,000,000
FLORIDA - 82.8%
Broward County Hsg. Fin. Auth. Multi-Family Hsg. Rev.
(Palm Aire-Oxford Proj.) Series 1990,
4% (Continental Casualty Co. Guaranteed) VRDN 1,800,000 1,800,000
Broward County Ind. Dev. Auth.:
(Femc & Fast Industries, Inc.) 4%, LOC SunTrust Bank,
South Florida, NA, VRDN 1,500,000 1,500,000
(Heico Aerospace Corp. Proj.) 4%, LOC SunTrust Bank,
South Florida, NA, VRDN (b) 1,000,000 1,000,000
(Rib Associates Proj.) Series 1989, 4%, LOC SunTrust
Bank, Orlando, VRDN (b) 1,165,000 1,165,000
Broward County School Dist. Auth. Bonds 7.125% 2/15/08
(Pre-Refunded to 2/15/99 @ 102) (c) 5,390,000 5,625,059
Clay County Hsg. Fin. Auth. Participating VRDN,
Series PT-61, 4.04%, LOC Bayerische
Hypotheken und Wechsel Bank (d) 3,130,000 3,130,000
Dade County Cap. Asset Allocation Spl. Oblig. Rev.
Series 1990, 4.40%, LOC Sanwa Bank Ltd., VRDN 900,000 900,000
Dade County Hsg. Fin. Auth. Rev.:
Bonds Single Family Mort. Rev. Series 1997 C,
4.05%, tender 10/16/98 (FGIC Capital
Markets Svcs. Guaranteed) (b) 3,800,000 3,800,000
Participating VRDN, Series 1995 B, 4.04%
(Liquidity Facility Bank of America) (d) 6,810,000 6,810,000
Dade County Ind. Dev. Auth. Rev.:
(Guastafeste Proj.):
Series 1987, 4%, LOC SunTrust Bank, Orlando, NA,
VRDN (b) 2,740,000 2,740,000
Series 1991, 4%, LOC SunTrust Bank, Miami, NA,
VRDN (b) 1,360,000 1,360,000
(Michael-Ann Russell Jewish Commty. Center) 3.90%,
LOC SunTrust Bank, Miami, NA, VRDN (b) 900,000 900,000
(Royal Store Fixtures Corp. Proj.) 4%,
LOC SunTrust Bank, Miami, NA, VRDN (b) 2,020,000 2,020,000
Dade County Multi-Family Hsg. Rev. (Biscayne View
Apts. Proj.) Series 1993, 4.10% (Commonwealth Life
Insurance Co. Guaranteed) VRDN (b) 28,475,000 28,475,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Dade County Wtr. & Swr. Sys. Rev. Participating VRDN,
Series SG-74, 4.02% (Liquidity Facility Societe Generale) (d) $
11,110,000 $ 11,110,000
Daytona Beach Med. Ctr. TAN (Halifax Hosp. Med. Ctr.)
Series 98, 4% 4/15/99, LOC Barnett Bank, NA 2,650,000 2,657,779
Escambia County Hsg. Fin. Auth. Single Family Mortgage Rev.
Participating VRDN, 4.04% (Liquidity Facility
Merrill Lynch & Co., Inc.) (d) 1,840,000 1,840,000
Escambia County Poll. Cont. Rev. Rfdg. (Monsanto Co. Proj.)
Series 1994, 3.85%, VRDN 4,775,000 4,775,000
Escambia County Solid Waste Disp. Rev. (Monsanto Co. Proj.)
Series 1993, 3.95%, VRDN (b) 5,300,000 5,300,000
Eustis Multi Purpose Rev. Series 1997A,
3.90%, LOC SunTrust Bank, Central Florida, NA, VRDN 1,300,000
1,300,000
Florida Board of Ed. Admin. Cap. Outlay (Pub. Ed.)
Participating VRDN, Series 1995, 4.02%
(Liquidity Facility Societe Generale) (d) 7,470,000 7,470,000
Florida Board of Ed. Participating VRDN:
Series 1995 A, 4.02% (Liquidity Facility Citibank, NA) (d) 9,500,000
9,500,000
Series 98-A, 4.02% (Liquidity Facility Merrill
Lynch & Co., Inc.) (d) 4,600,000 4,600,000
Florida Dept. of Envir. Protection Preservation 2000
Participating VRDN:
3.85% (Liquidity Facility Bankers Trust Co.)
(FSA Insured) (d) 4,365,000 4,365,000
Series FR/RI-A18, 4% (Liquidity Facility Nat'l.
Westminster Bank, PLC) (d) 2,500,000 2,500,000
Florida Dept. of Trans. Participating VRDN,
4.02% (Liquidity Facility Societe Generale) (d) 13,010,000
13,010,000
Florida Gen. Oblig. Participating VRDN, Series 1997,
4.02% (Liquidity Facility Merrill Lynch & Co., Inc.) (d) 3,000,000
3,000,000
Florida Hsg. Fin. Agcy.:
Bonds:
(Homeowner Mortgage Rev.) Series 5, 3.80%
tender 6/15/99 (FGIC Insured) 4,300,000 4,300,000
(Oaks at Mill Creek Proj.) Series OO 1985, 3.85%,
tender 11/1/98, LOC Chase Manhattan Bank 3,065,000 3,065,000
(Village Place Proj.) Series 1985 LL, 3.85%, tender
11/1/98, LOC Chase Manhattan Bank 3,000,000 3,000,000
Participating VRDN, Series 98, 4.10% (Liquidity Facility
Bank of New York, NA) (d) 4,400,000 4,400,000
(Ashley Lake Park II Proj.) Series 1989 J, 4%,
LOC Barclays Bank, VRDN 1,900,000 1,900,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Florida Hsg. Fin. Agcy.: - continued
(Banyan Bay Apts. Proj.) 4%, LOC PNC Bank,
Kentucky, VRDN (b) $ 5,275,000 $ 5,275,000
(Heron Park Partners Ltd.) 4%, LOC NationsBank,
NA VRDN 3,300,000 3,300,000
Multi-Family Hsg. Rev. Rfdg.:
(Brandon-Oxford Proj.) Series 1990 C, 4%
(Continental Casualty Co. Guaranteed) VRDN 13,100,000 13,100,000
(Hillsborough-Oxford Proj.) Series D, 4%
(Continental Casualty Co. Guaranteed) VRDN 5,590,000 5,590,000
Florida Local Gov't. Fin. Commission Rev. Series A, CP:
3.75% 7/14/98, LOC First Union Nat'l. Bank 1,600,000 1,600,000
3.75% 9/4/98, LOC First Union Nat'l. Bank 9,080,000 9,080,000
Fort Myers Improvement Rev. Participating VRDN,
Series PA-180, 4.02% (Liquidity Facility Merrill
Lynch & Co., Inc.) (d) 1,950,000 1,950,000
Hillsborough County Aviation Auth. (Tampa Int'l. Arpt.) CP:
2nd Series:
3.60% 7/17/98, LOC Nat'l. Westminster Bank, PLC (b) 5,100,000
5,100,000
3.70% 9/9/98, LOC Nat'l. Westminster Bank, PLC (b) 1,000,000
1,000,000
3.70% 9/11/98, LOC Nat'l. Westminster Bank, PLC (b) 3,600,000
3,600,000
3.60% 7/17/98, LOC Nat'l. Westminster Bank, PLC (b) 3,900,000
3,900,000
3.70% 9/11/98, LOC Nat'l. Westminster Bank, PLC (b) 1,800,000
1,800,000
Hillsborough County Ind. Dev. Rev. (Vigo Importing Co. Proj.):
4.05% LOC NationsBank, NA, South, VRDN (b) 1,340,000 1,340,000
4.35% LOC Barnett Bank, NA, VRDN (b) 1,300,000 1,300,000
Indian River County Hosp. Dist. Bonds Hosp. Rev.:
Series 1988:
3.70%, 9/10/98, LOC Kredietbank, NV, CP mode 4,700,000 4,700,000
3.70%, 9/11/98, LOC Kredietbank, NV, CP mode 4,350,000 4,350,000
Series 1989, 3.65%, 9/10/98, LOC Kredietbank,
NV, CP mode 1,800,000 1,800,000
Series 1990, 3.70%, 9/10/98, LOC Kredietbank,
NV, CP mode 2,000,000 2,000,000
Jacksonville Health Fac. Auth. Participating VRDN,
Series 1996 M, 4.02% (Liquidity Facility Caisse
des Depots et Consignations) (d) 14,980,000 14,980,000
Jacksonville Hosp. Rev. (Univ. Med. Ctr. Proj.):
Series 1988, 4.25%, LOC Sumitomo Bank Ltd., VRDN 5,100,000
5,100,000
Series 1989, 4.25%, LOC Sumitomo Bank Ltd., VRDN 4,800,000
4,800,000
Jacksonville Ind. Dev. Rev. (Samuel C. Taylor Foundation
1987 Proj.) 4%, LOC Barnett Bank Nat'l. Assoc., VRDN 4,600,000
4,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Lee County Hosp. Board Hosp. Rev. Bonds (Lee Memorial
Hosp. Proj.) Series 1997-B:
3.95%, 6/2/98 (Liquidity Facility SunTrust Bank,
Central Florida, NA) CP mode $ 4,000,000 $ 4,000,000
3.85%, 9/15/98 (Liquidity Facility SunTrust Bank,
Central Florida, NA) CP mode 2,100,000 2,100,000
Mount Dora Health Fac. Auth. Rev. (Waterman
Village Proj.) Series 1996A, 3.85%, LOC Barnett
Bank, VRDN 4,000,000 4,000,000
Okeechobee County Solid Waste Rev. (Chambers Waste
Sys.) Series 1992, 4%, LOC Morgan Guaranty Trust NY,
VRDN (b) 8,600,000 8,600,000
Orange County Health Fac. Auth. Participating VRDN,
Series PA-95, 4% (Liquidity Facility Merrill Lynch & Co.) (d)
3,985,000 3,985,000
Orange County Hsg. Fin. Auth. Multi-Family Hsg. Rev.:
(Falcon Trace Apt.) Series D, 3.86%, LOC AmSouth
Bank, NA, VRDN (b) 4,050,000 4,050,000
(Regal Pointe Apts.) Series 1997 A, 4.05%, LOC
NationsBank, NA VRDN 5,893,000 5,893,000
(Westlake Club Proj.) Series 91A, 3.90% (Continental
Casualty Co.) VRDN 5,950,000 5,950,000
Series 1997 D, 3.86%, LOC Key Bank Nat'l. Assoc., VRDN 4,000,000
4,000,000
Orlando Util. Commission Wtr. & Elec. Participating VRDN,
Series SG-18, 4.02% (Liquidity Facility Societe Generale) (d)
4,365,000 4,365,000
Palm Beach County Hsg. Fin. Auth. Rev.:
(Lake Crystal Apts. Proj. Phase II) Series 1988 A,
4.05%, LOC Citibank, VRDN (b) 1,785,000 1,785,000
Single Family Mtg. Rev. Bonds Series B, 3.95%
tender 7/1/98 7,000,000 7,000,000
Pasco County Hsg. Fin. Auth. Multi-Family Hsg. Rev.
(Carlton Arms of Magnolia Valley) Series 1985,
3.825%, LOC Bankers Trust Company, VRDN 2,000,000 2,000,000
Pensacola Rev. (Harborview Corp. Proj.)
3.90%, LOC AmSouth Bank, NA, Alabama, VRDN 2,805,000 2,805,000
Pinellas County Hsg. Fin. Agcy. Single Family Hsg. Bonds
3.70% tender 2/1/99 (b) 7,500,000 7,500,000
Pinellas County Ind. Dev. Auth. (Hunter Douglas Inc.)
4%, LOC ABN-AMRO Bank, NV, VRDN (b) 2,100,000 2,100,000
Putnam County Dev. Auth. Poll. Cont. Rev. Bonds (Seminole
Elec. Coop.) Series 1984 D, 3.65% tender 6/15/98
(Nat'l. Rural Utils. Coop-CFC Guaranteed) 10,000,000 10,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Sarasota County Pub. Hosp. Dist. Bonds (Sarasota
Memorial Hosp.):
Series A:
3.75%, 8/13/98, (Liquidity Facility SunTrust Bank,
Central Florida, NA) CP mode $ 4,300,000 $ 4,300,000
3.80%, 9/11/98 (Liquidity Facility SunTrust Bank,
Central Florida, NA) CP mode 1,400,000 1,400,000
Series 1991, 3.70%, 8/13/98, CP mode 4,000,000 4,000,000
St. John's County Ind. Dev. Auth. (V.A.W. of America)
Series 1997, 3.95%, LOC NationsBank, NA, VRDN 2,940,000 2,940,000
St. Lucie (City of Port) Util. Rev. Participating VRDN,
4.02% (Liquidity Facility Merrill Lynch & Co., Inc) (d) 3,500,000
3,500,000
St. Lucie County Poll. Cont. Rev. Rfdg. Bonds (Florida Lt. &
Pwr. Co.) Series 1994 A, 3.80%, 8/14/98, CP mode 1,250,000 1,250,000
St. Petersburg Cap. Impt. Rev. (Arpt. Proj.) Series 1997C,
4%, LOC SunTrust Bank, Tampa Bay, NA, VRDN (b) 1,340,000 1,340,000
Sunrise Util. Sys. Rev. Participating VRDN:
Series SG-16, 4% (Liquidity Facility Societe Generale) (d) 5,030,000
5,030,000
Series SGB-17, 4% (Liquidity Facility Societe Generale) (d)
2,325,000 2,325,000
355,800,838
ILLINOIS - 2.3%
Illinois Dev. Fin. Auth. Poll. Cont. Rev. Series B,
3.90% (Liquidity Facility First Nat'l. Bank of Chicago)
(MBIA Insured) VRDN (b) 10,000,000 10,000,000
INDIANA - 0.8%
Rockport Ind. Poll. Cont. Rev. Rev. (AK Steel Corp. Proj.)
Series 1997 A, 4%, LOC PNC Bank, Ohio, VRDN 3,500,000 3,500,000
LOUISIANA - 0.4%
Plaquemines Parish Envir. Rev. (BP Exploration & Oil, Inc.)
Series 1994, 4.20%, VRDN (b) 1,500,000 1,500,000
MAINE - 4.7%
Maine Edl. Loan Marketing Corp. Student Loan Rev.
Series 1997 A-2, 4% (BPA Credit Swiss
First Boston) VRDN (b) 20,100,000 20,100,000
NEVADA - 0.4%
Las Vegas Valley Wtr. Dist. Series A, 3.70% 9/10/98,
LOC Union Bank of Switzerland & LOC Westdeutsche
Landesbank Girozentrale, CP 1,500,000 1,500,000
PENNSYLVANIA - 0.2%
Northeastern Hosp. Auth. Hosp. Bonds Central Services
Series B, 3.70%, 9/8/98 (BPA PNC Bank, NA) CP mode 1,000,000
1,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
RHODE ISLAND - 0.4%
Rhode Island Student Loan Auth. (Student Loan Prog.)
Series 1995-1, 4%, LOC Nat'l. Westminster Bank, PLC,
VRDN (b) $ 1,500,000 $ 1,500,000
TENNESSEE - 1.4%
Memphis-Shelby County Arpt. Auth. Series 1996 B-2,
4%, LOC First Union Nat'l. Bank of North Carolina,
VRDN (b) 6,000,000 6,000,000
TEXAS - 6.1%
Brazos River Auth. Poll. Cont. Rev. Rfdg. Bonds (Texas Elec.
Util. Proj.) Series 1994 A, 3.70%, 9/9/98, LOC Canadian
Imperial Bank of Commerce, CP mode (b) 4,000,000 4,000,000
Brazos River Hrb. Navigational Dist. (Dow Chemical
Co. Proj.):
Series 1997, 4.20%, VRDN (b) 1,100,000 1,100,000
Series 1998, 4.20%, VRDN (b) 9,800,000 9,800,000
Harris County Hsg. Fin. Corp. (The Mills Apts. Proj.)
3.95% (Fannie Mae Guaranteed) VRDN (b) 3,000,000 3,000,000
North Texas Higher Ed. Auth. Student Loan Rev.:
Series 1991 C, 4% (AMBAC Insured) (BPA Student Loan
Marketing Assoc.) VRDN (b) 1,200,000 1,200,000
Series A, 4% (AMBAC Insured) (Liquidity Facility Student
Loan Marketing Assoc.) VRDN (b) 800,000 800,000
San Antonio Hsg. Fin. Auth.:
(Harbor Care Ambassador) 3.95% (Fannie Mae
Guaranteed) VRDN (b) 2,200,000 2,200,000
(La Jolla Apts.) 3.95% (Fannie Mae Guaranteed) VRDN (b) 2,000,000
2,000,000
South Texas Higher Ed. Auth. Student Loan Rev. Series 1997,
4% (MBIA Insured) (BPA Student Loan Marketing Assoc.)
VRDN (b) 2,300,000 2,300,000
26,400,000
TOTAL INVESTMENTS - 100% $ 429,500,838
Total Cost for Income Tax Purposes $ 429,500,838
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
TAN - Tax Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Security collateralized by an amount sufficient to pay interest
and principal.
(d) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At November 30, 1997, the fund had a capital loss carryforward of
approximately $55,500 of which $100, $1,000, $22,000, $4,000, $10,000,
and $18,400 will expire on November 30, 2000, 2001, 2002, 2003, 2004
and 2005, respectively.
SPARTAN FLORIDA MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE - $ 429,500,838
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR FUND SHARES SOLD 11,068,584

INTEREST RECEIVABLE 3,056,340

TOTAL ASSETS 443,625,762

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 7,821

PAYABLE FOR FUND SHARES REDEEMED 141,081

DISTRIBUTIONS PAYABLE 36,097

ACCRUED MANAGEMENT FEE 183,149

OTHER PAYABLES AND ACCRUED EXPENSES 2,434

TOTAL LIABILITIES 370,582

NET ASSETS $ 443,255,180

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 443,310,713

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (55,533)

NET ASSETS, FOR 443,310,713 SHARES OUTSTANDING $ 443,255,180

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($443,255,180 (DIVIDED BY) 443,310,713 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 9,684,815

EXPENSES

MANAGEMENT FEE $ 1,313,229

NON-INTERESTED TRUSTEES' COMPENSATION 1,042

TOTAL EXPENSES BEFORE REDUCTIONS 1,314,271

EXPENSE REDUCTIONS (68,841) 1,245,430

NET INTEREST INCOME 8,439,385

NET REALIZED GAIN (LOSS) ON INVESTMENTS 14

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,439,399

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 8,439,385 $ 14,146,091
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 14 (18,438)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 8,439,399 14,127,653
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (8,439,385) (14,146,091)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 751,008,161 772,805,775
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 8,045,475 13,506,143

COST OF SHARES REDEEMED (737,204,260) (767,165,281)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 21,849,376 19,146,637
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 21,849,390 19,128,199

NET ASSETS

BEGINNING OF PERIOD 421,405,790 402,277,591

END OF PERIOD $ 443,255,180 $ 421,405,790

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED NOVEMBER 30,
MAY 31, 1998

(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF
PERIOD

INCOME FROM .016 .032 .031 .035 .024 .025
INVESTMENT
OPERATIONS
NET INTEREST
INCOME

LESS DISTRIBUTIONS

FROM NET INTEREST (.016) (.032) (.031) (.035) (.024) (.025)
INCOME

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD

TOTAL RETURN B, C 1.62% 3.29% 3.17% 3.57% 2.47% 2.51%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END $ 443,255 $ 421,406 $ 402,278 $ 363,396 $ 337,530 $ 306,741
OF PERIOD
(000 OMITTED)

RATIO OF EXPENSES .50% A .50% .50% .50% .46% D .18% D
TO AVERAGE NET
ASSETS

RATIO OF EXPENSES .47% A, E .49% E .47% E .50% .46% .18%
TO AVERAGE NET
ASSETS AFTER
EXPENSE
REDUCTIONS

RATIO OF NET INTEREST 3.21% A 3.21% 3.15% 3.52% 2.43% 2.48%
INCOME TO
AVERAGE NET
ASSETS

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1998 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Florida Municipal Income Fund (the income fund) is a fund of
Fidelity Court Street Trust. Spartan Florida Municipal Money Market
Fund (the money market fund) is a fund of Fidelity Court Street Trust
II. Each trust is registered under the Investment Company Act of 1940,
as amended (the 1940 Act), as an open-end management investment
company. Fidelity Court Street Trust and Fidelity Court Street Trust
II (the trusts) are organized as a Massachusetts business trust and a
Delaware business trust, respectively. Each fund is authorized to
issue an unlimited number of shares. The financial statements have
been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the money market
fund and the income fund:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities for
which quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
MONEY MARKET FUND. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. For the money market fund, accretion of discount represents
unrealized gain until realized at the time of a security disposition
or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and
paid monthly from net interest income. Distributions from realized
gains, if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
generally accepted accounting principles. These differences, which may
result in distribution reclassifications, are primarily due to
differing treatments for market discount, capital loss carryforwards
and losses deferred due to futures. The income fund also utilized
earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax
purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Any taxable income or gain
remaining at fiscal year end is distributed in the following year.
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in the income fund
less than 180 days are subject to a short-term trading fee equal to
.50% of the proceeds of the redeemed shares. The fee, which is
retained by the fund, is accounted for as an addition to paid in
capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the funds may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc., (formerly FMR Texas, Inc.) an
affiliate of Fidelity Management & Research Company (FMR). The Cash
Fund is an open-end money market fund available only to investment
companies and other accounts managed by FMR and its affiliates. The
Cash Fund seeks preservation of capital, liquidity, and current income
by investing in high-quality, short-term municipal securities of
various states and municipalities. Income distributions from the Cash
Fund are declared daily and paid monthly from net interest income.
Income distributions earned by the fund are recorded as interest
income in the accompanying financial statements.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell
securities on a delayed delivery basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of
the underlying securities and the date when the securities will be
delivered and paid for are fixed at the time the transaction is
negotiated. The market values of the securities purchased or sold on a
delayed delivery basis are identified as such in each applicable
fund's schedule of investments. With respect to purchase commitments,
each fund identifies securities as segregated in its custodial records
with a value at least equal to the amount of the commitment. Losses
may arise due to changes in the market value of the underlying
securities or if the counterparty does not perform under the contract.
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS. The income fund may use futures contracts to manage
its exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Losses may arise from changes in the value of the underlying
instruments or if the counterparties do not perform under the
contracts' terms. Gains (losses) are realized upon the expiration or
closing of the futures contracts. Futures contracts are valued at the
settlement price established each day by the board of trade or
exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $98,692,696 and $62,327,026, respectively.
The market value of futures contracts opened and closed during the
period amounted to $12,140,603 and $19,467,783, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .55% and .50% of average net assets for the income
and money market funds, respectively.
FMR also bears the cost of providing shareholder services to each
fund. To offset the cost of providing these services, FMR or its
affiliates collect certain transaction fees from the money market
funds' shareholders which amounted to $3,531 for the period.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser,
Fidelity Investments Money Management, Inc.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
SUB-ADVISER FEE - CONTINUED
(formerly FMR Texas, Inc.), a wholly owned subsidiary of FMR, receives
a fee from FMR of 50% of the management fee payable to FMR. The fee is
paid prior to any voluntary expense reimbursements which may be in
effect.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of certain funds with the
funds' custodian and transfer agent whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
each applicable fund's expenses. During the period, the income and
money market fund's expenses were reduced by $7,569 and $68,841,
respectively, under these arrangements.
PROXY VOTING RESULTS

A special meeting of the fund's shareholders was held on December 17,
1997. The results of votes taken among shareholders on proposals
before them are listed below.
PROPOSAL 1
To elect as Trustees the following twelve nominees.
# OF % OF
SHARES VOTED SHARES VOTED
RALPH F. COX
AFFIRMATIVE 742,366,479.909 96.787

WITHHELD 24,642,287.090 3.213

TOTAL 767,008,766.999 100.000

PHYLLIS BURKE DAVIS
AFFIRMATIVE 741,858,140.779 96.721

WITHHELD 25,150,626.220 3.279

TOTAL 767,008,766.999 100.000

ROBERT M. GATES
AFFIRMATIVE 740,326,691.979 96.521

WITHHELD 26,682,075.020 3.479

TOTAL 767,008,766.999 100.000

EDWARD C. JOHNSON 3D
AFFIRMATIVE 742,526,984.799 96.808

WITHHELD 24,481,782.200 3.192

TOTAL 767,008,766.999 100.000

E. BRADLEY JONES
AFFIRMATIVE 738,558,877.569 96.291

WITHHELD 28,449,889.430 3.709

TOTAL 767,008,766.999 100.000

DONALD J. KIRK
AFFIRMATIVE 742,698,625.339 96.831

WITHHELD 24,310,141.660 3.169

TOTAL 767,008,766.999 100.000

# OF % OF
SHARES VOTED SHARES VOTED
PETER S. LYNCH
AFFIRMATIVE 742,804,693.399 96.844

WITHHELD 24,204,073.600 3.156

TOTAL 767,008,766.999 100.000

WILLIAM O. MCCOY
AFFIRMATIVE 742,777,102.439 96.841

WITHHELD 24,231,664.560 3.159

TOTAL 767,008,766.999 100.000

GERALD C. MCDONOUGH
AFFIRMATIVE 740,489,812.019 96.543

WITHHELD 26,518,954.980 3.457

TOTAL 767,008,766.999 100.000

MARVIN L. MANN
AFFIRMATIVE 742,492,623.319 96.804

WITHHELD 24,516,143.680 3.196

TOTAL 767,008,766.999 100.000

ROBERT C. POZEN
AFFIRMATIVE 742,603,015.859 96.818

WITHHELD 24,405,751.140 3.182

TOTAL 767,008,766.999 100.000

THOMAS R. WILLIAMS
AFFIRMATIVE 740,510,918.469 96.545

WITHHELD 26,497,848.530 3.455

TOTAL 767,008,766.999 100.000

PROPOSAL 2
To ratify the selection of Coopers and Lybrand L.L.P. as independent
accountants of the fund.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 213,832,639.180 95.608

AGAINST 1,910,851.930 0.854

ABSTAIN 7,912,789.160 3.538

TOTAL 767,008,766.999 100.000

PROPOSAL 3
To amend the Declaration of Trust to provide voting rights based on a
shareholder's total dollar investment in a fund, rather than on the
number of shares owned.
Trust Votes:
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 689,235,885.364 89.860

AGAINST 38,356,553.755 5.001

ABSTAIN 39,416,327.880 5.139

TOTAL 223,656,280.270 100.000

Spartan Florida Municipal Money Market Votes:
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 203,330,871.030 90.912

AGAINST 8,814,234.780 3.941

ABSTAIN 11,511,174.460 5.147

TOTAL 223,656,280.270 100.000

MANAGING YOUR INVESTMENTS

For quotes.*

For account balances and holdings.

To review orders and mutual
fund activity.

To change your PIN.

If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER, MONEY MARKET FUND
Fidelity Investments
Money Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Dwight D. Churchill, Vice President -
INCOME FUND
Boyce I. Greer, Vice President -
MONEY MARKET FUND
Christine Thompson, Vice President -
INCOME FUND
Scott Orr, Vice President -
MONEY MARKET FUND
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress (registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(REGISTERED TRADEMARK)

CONNECTICUT MUNICIPAL
FUNDS
AND
FIDELITY
CONNECTICUT MUNICIPAL
MONEY MARKET FUND
SEMIANNUAL REPORT
MAY 31, 1998
CONTENTS

<TABLE>
<CAPTION>
<S> <C> <C>
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES

SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

4 PERFORMANCE

7 FUND TALK: THE MANAGER'S OVERVIEW

10 INVESTMENT CHANGES

11 INVESTMENTS

18 FINANCIAL STATEMENTS

SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

22 PERFORMANCE

24 FUND TALK: THE MANAGER'S OVERVIEW

26 INVESTMENT CHANGES

27 INVESTMENTS

31 FINANCIAL STATEMENTS

FIDELITY CONNECTICUT MUNICIPAL MONEY MARKET FUND

35 PERFORMANCE

37 FUND TALK: THE MANAGER'S OVERVIEW

39 INVESTMENT CHANGES

40 INVESTMENTS

45 FINANCIAL STATEMENTS

NOTES 49 NOTES TO THE FINANCIAL STATEMENTS

PROXY VOTING RESULTS 53

</TABLE>

PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the past 10 years total returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS

SPARTAN CT MUNICIPAL INCOME 3.57% 9.18% 34.99% 116.10%

LB CONNECTICUT 4 PLUS YEAR ENHANCED 3.86% 9.69% N/A N/A
MUNICIPAL BOND

CONNECTICUT MUNICIPAL DEBT FUNDS 3.51% 8.79% 32.66% 116.18%

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Lehman Brothers Connecticut 4 Plus Year Enhanced Municipal Bond
Index - a total return performance benchmark for Connecticut
investment-grade municipal bonds with maturities of at least four
years. To measure how the fund's performance stacked up against its
peers, you can compare it to the Connecticut municipal debt funds
average, which reflects the performance of mutual funds with similar
objectives tracked by Lipper Analytical Services, Inc. The past six
months average represents a peer group of 26 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS

SPARTAN CT MUNICIPAL INCOME 9.18% 6.18% 8.01%

LB CONNECTICUT 4 PLUS YEAR ENHANCED 9.69% N/A N/A
MUNICIPAL BOND

CONNECTICUT MUNICIPAL DEBT FUNDS 8.79% 5.81% 8.01%

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a slightly different figure than
that obtained by averaging the cumulative total returns and
annualizing the result.)
$10,000 OVER 10 YEARS
Spartan CT Muni Income LB Municipal Bond
00407 LB015
1988/05/31 10000.00 10000.00
1988/06/30 10188.17 10146.30
1988/07/31 10239.03 10212.45
1988/08/31 10290.56 10221.44
1988/09/30 10492.68 10406.45
1988/10/31 10677.94 10589.60
1988/11/30 10578.35 10492.60
1988/12/31 10736.28 10599.94
1989/01/31 10881.58 10819.15
1989/02/28 10777.62 10695.70
1989/03/31 10789.23 10670.14
1989/04/30 11083.19 10923.45
1989/05/31 11315.90 11150.33
1989/06/30 11505.07 11301.75
1989/07/31 11629.98 11455.57
1989/08/31 11507.38 11343.42
1989/09/30 11473.01 11309.61
1989/10/31 11609.07 11447.93
1989/11/30 11780.38 11648.27
1989/12/31 11856.48 11743.55
1990/01/31 11751.39 11688.00
1990/02/28 11858.21 11792.03
1990/03/31 11878.89 11795.56
1990/04/30 11693.45 11710.16
1990/05/31 11984.31 11965.80
1990/06/30 12106.07 12070.98
1990/07/31 12286.18 12248.42
1990/08/31 12065.27 12070.57
1990/09/30 12143.28 12077.45
1990/10/31 12326.52 12296.54
1990/11/30 12592.41 12543.82
1990/12/31 12649.88 12598.39
1991/01/31 12790.26 12767.46
1991/02/28 12870.79 12878.53
1991/03/31 12891.38 12883.17
1991/04/30 13055.22 13054.52
1991/05/31 13170.99 13170.57
1991/06/30 13069.18 13157.53
1991/07/31 13224.31 13317.79
1991/08/31 13367.99 13493.19
1991/09/30 13487.87 13668.87
1991/10/31 13620.83 13791.89
1991/11/30 13653.63 13830.37
1991/12/31 13988.24 14127.17
1992/01/31 14009.49 14159.38
1992/02/29 14016.42 14163.91
1992/03/31 13952.36 14169.15
1992/04/30 14026.10 14295.25
1992/05/31 14218.19 14463.51
1992/06/30 14498.30 14706.21
1992/07/31 14950.08 15147.10
1992/08/31 14738.48 14999.41
1992/09/30 14839.39 15097.51
1992/10/31 14586.48 14949.10
1992/11/30 14980.34 15216.84
1992/12/31 15137.78 15372.20
1993/01/31 15363.51 15550.98
1993/02/28 15988.18 16113.46
1993/03/31 15770.62 15943.14
1993/04/30 15915.98 16104.01
1993/05/31 16009.06 16194.51
1993/06/30 16292.65 16464.80
1993/07/31 16316.77 16486.37
1993/08/31 16686.87 16829.62
1993/09/30 16889.23 17021.31
1993/10/31 16898.27 17054.16
1993/11/30 16749.81 16903.91
1993/12/31 17102.32 17260.75
1994/01/31 17300.23 17457.87
1994/02/28 16824.28 17005.71
1994/03/31 16058.82 16313.24
1994/04/30 16196.79 16451.57
1994/05/31 16293.30 16594.21
1994/06/30 16192.11 16492.82
1994/07/31 16517.12 16795.13
1994/08/31 16554.28 16853.24
1994/09/30 16282.27 16605.84
1994/10/31 15919.60 16310.92
1994/11/30 15475.49 16016.02
1994/12/31 15902.46 16368.53
1995/01/31 16411.35 16836.34
1995/02/28 16913.11 17325.94
1995/03/31 17093.69 17525.02
1995/04/30 17113.23 17545.70
1995/05/31 17645.61 18105.58
1995/06/30 17486.84 17948.06
1995/07/31 17587.07 18118.21
1995/08/31 17831.82 18347.95
1995/09/30 17975.56 18464.09
1995/10/31 18203.94 18732.56
1995/11/30 18479.02 19043.33
1995/12/31 18625.05 19226.34
1996/01/31 18787.47 19371.50
1996/02/29 18695.66 19240.74
1996/03/31 18442.82 18994.84
1996/04/30 18404.14 18941.09
1996/05/31 18368.73 18933.51
1996/06/30 18600.53 19139.70
1996/07/31 18749.42 19313.87
1996/08/31 18728.44 19309.23
1996/09/30 18962.90 19579.56
1996/10/31 19182.59 19801.01
1996/11/30 19522.19 20163.36
1996/12/31 19414.22 20078.68
1997/01/31 19481.51 20116.63
1997/02/28 19645.68 20301.30
1997/03/31 19378.18 20030.68
1997/04/30 19530.80 20198.34
1997/05/31 19792.96 20502.12
1997/06/30 19999.22 20720.47
1997/07/31 20584.43 21294.43
1997/08/31 20362.74 21094.90
1997/09/30 20625.16 21345.29
1997/10/31 20746.77 21482.54
1997/11/30 20864.83 21608.86
1997/12/31 21187.62 21924.13
1998/01/31 21403.25 22150.39
1998/02/28 21388.83 22157.04
1998/03/31 21381.59 22176.53
1998/04/30 21297.46 22076.52
1998/05/29 21604.94 22425.99
IMATRL PRASUN SHR__CHT 19980531 19980611 151623 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan Connecticut Municipal Income Fund on May 31, 1988.
As the chart shows, by May 31, 1998, the value of the investment would
have grown to $21,610 - a 116.10% increase on the initial investment.
For comparison, look at how the Lehman Brothers Municipal Bond Index -
which reflects the performance of the investment-grade municipal bond
market - did over the same period. With dividends and capital gains,
if any, reinvested, the same $10,000 would have grown to $22,426 - a
124.26% increase.

UNDERSTANDING
PERFORMANCE
HOW A FUND DID YESTERDAY IS
NO GUARANTEE OF HOW IT WILL DO
TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN
THE OPPOSITE DIRECTION OF
INTEREST RATES. IN TURN, THE SHARE
PRICE, RETURN AND YIELD OF A
FUND THAT INVESTS IN BONDS WILL
VARY. THAT MEANS IF YOU SELL
YOUR SHARES DURING A MARKET
DOWNTURN, YOU MIGHT LOSE
MONEY. BUT IF YOU CAN RIDE OUT
THE MARKET'S UPS AND DOWNS,
YOU MAY HAVE A GAIN.
(CHECKMARK)
TOTAL RETURN COMPONENTS
SIX MONTHS ENDED YEARS ENDED NOVEMBER 30,
MAY 31,

1998 1997 1996 1995 1994 1993

DIVIDEND RETURN 2.43% 5.19% 5.29% 6.62% 5.28% 6.29%

CAPITAL RETURN 1.14% 1.69% 0.36% 12.79% -12.89% 5.52%

TOTAL RETURN 3.57% 6.88% 5.65% 19.41% -7.61% 11.81%

<TABLE>
<CAPTION>
<S> <C> <C> <C>
DIVIDENDS AND YIELD
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR

DIVIDENDS PER SHARE 4.62(CENTS) 27.25(CENTS) 54.91(CENTS)

ANNUALIZED DIVIDEND RATE 4.78% 4.77% 4.82%

30-DAY ANNUALIZED YIELD 4.12% - -

30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 6.74% - -

</TABLE>

DIVIDENDS per share show the income paid by the fund for a set period
and do not reflect any tax reclassifications. If you annualize this
number, based on an average share price of $11.38 over the past one
month, $11.45 over the past six months and $11.39 over the past one
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all bond funds based
on the yields of the bonds in the fund, averaged over the past 30
days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds
from different companies on an equal basis. The tax-equivalent yield
shows what you would have to earn on a taxable investment to equal the
fund's tax-free yield, if you're in the 38.88% combined effective 1998
federal and state income tax bracket, but does not reflect the payment
of the alternative minimum tax, if applicable.
SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

FUND TALK: THE MANAGER'S OVERVIEW

MARKET RECAP
Investor sentiment, shifting supply
and demand conditions, and
volatility in Asia played key roles
in the municipal bond market during
the six months that ended May 31,
1998. During this period, the
Lehman Brothers Municipal Bond
Index - a measure of the municipal
bond market - returned 3.78%.
To compare, the Lehman Brothers
Aggregate Bond Index - a
measure of the investment-grade
taxable bond market in the U.S. -
returned 4.09%. In late 1997,
volatility in Asia helped prop up the
muni bond market. Investors felt that
currency devaluations in that region
would translate into cheaper prices
for Asian goods and help control
the inflation that can eat into bonds'
fixed payments. Since the beginning
of 1998, though, muni bond supply
increased as many issuers took
advantage of lower interest rates
to refinance their debt at lower rates.
That, combined with softening
demand, dampened the
performance of muni bonds in
early 1998. On top of that, the
municipal bond market
experienced extremely heavy
issuance in March and April, as
issuers rushed to market before the
largest deal in municipal market
history took place in May - a
$3.5 billion issuance by Long Island
Power Authority. This heavy
supply, coupled with only
intermittent demand, put
downward pressure on municipal
bonds in April. Renewed fears of
economic and political dislocation in
Asia attracted investors to all
sectors of the bond market in May,
but, overall, municipals lagged
taxable issues through the first
five months of 1998.
An interview with George Fischer, Portfolio Manager of Spartan
Connecticut Municipal Income Fund
Q. HOW DID THE FUND PERFORM, GEORGE?
A. For the six-month period that ended May 31, 1998, the fund had a
total return of 3.57%. To get a sense of how the fund did relative to
its competitors, the Connecticut municipal debt funds average returned
3.51% for the same six-month period, according to Lipper Analytical
Services. Additionally, the Lehman Brothers Connecticut 4 Plus Year
Enhanced Municipal Bond Index - a broad measure of the performance of
the Connecticut municipal bond market - returned 3.86% for the same
six-month period. For the 12-month period that ended May 31, 1998, the
fund returned 9.18%. That compared to the 8.79% return of the
Connecticut municipal debt funds average and the 9.69% return of the
Lehman Brothers Connecticut 4 Plus Year Enhanced Municipal Bond Index
over the same one-year period.
Q. WHICH HOLDINGS PERFORMED WELL DURING THE PERIOD?
A. Securities rated Baa by Moody's Investors Service performed
particularly well during the period. Faced with falling interest
rates, investors continued to seek Baa-rated securities because they
offered more yield than higher-rated A and AA securities. What's more,
there was only a limited supply of Baa-rated bonds available, so
strong demand pushed up against low supply and boosted their prices. I
purposely kept the fund's stake in Baa-rated bonds relatively light
during the period, however, because they generally didn't offer enough
additional yield to compensate for their lower credit quality.
Q. WERE THERE ANY DISAPPOINTMENTS DURING THE PAST SIX MONTHS?
A. Housing bonds - which made up 3.5% of the fund's investments at the
end of the period - lagged the overall Connecticut municipal market.
Housing bonds experienced increased prepayment activity when interest
rates fell, because mortgage borrowers refinanced their debt in order
to lower their interest costs. While prepayment is good for the
borrower, it can be bad for housing bond holders because it can force
them to reinvest at lower interest rates. However, I continued to hold
onto most of the fund's housing bonds because they carried attractive
yields.
Q. HOW DID YOU ALLOCATE THE FUND'S INVESTMENTS AMONG BONDS WITH
VARIOUS MATURITIES DURING THE PAST SIX MONTHS?
A. I kept the fund focused on bonds with maturities of between five
and 15 years. I did that because the yield curve - a graphical
representation of the yield of bonds by ascending maturity dates - was
relatively flat beyond 15 years. Up to about that point, an investor
was paid an appropriate amount of added income for each additional
year of maturity. It is this additional income that compensates the
investor for the added risk taken on by investing in the
longer-maturity part of the municipal market. But for bonds with
maturities of 15 years or longer, the extra income for each successive
year was, in my opinion, less attractive given the level of risk
inherent in longer-term bonds. Throughout the period, I also kept the
fund's duration - which measures its sensitivity to changes in
interest rates - in line with the Connecticut municipal bond market as
a whole, as represented by the Lehman Brothers Connecticut 4 Plus Year
Enhanced Municipal Bond Index.
Q. THE COMBINED STAKE IN BONDS ISSUED BY PUERTO RICO AND GUAM GREW TO
10.4% OF THE FUND'S INVESTMENTS AT THE END OF THE PERIOD. WHAT ROLE DO
THESE INVESTMENTS PLAY IN A CONNECTICUT MUNICIPAL BOND FUND?
A. As territories of the United States, Puerto Rico and Guam have the
ability to issue municipal debt that is free from U.S. federal taxes
and the state taxes of each of the 50 states. Over the past six
months, the supply of Connecticut municipal bonds was quite tight, so
I didn't find a lot of opportunities to buy bonds issued in the state
at what I thought were reasonable prices. Rather than overpaying for
Connecticut bonds, I turned to the Puerto Rico and Guam markets and
bought bonds with relatively high credit quality at more attractive
prices and with slightly higher yields than those found in
Connecticut.
Q. WHAT'S AHEAD FOR THE FUND AND THE MUNICIPAL MARKET?
A. At the end of the period, municipals were attractively priced
compared to Treasury bonds, mainly because the supply of municipals
has been heavy so far in 1998. A relatively large supply of municipals
came to the national market in the first five months of 1998 as
municipal issuers sought to take advantage of low interest rates to
issue new or refinance old debt. If supply tapers off - which I
believe it will in the second half of 1998 - municipals may do
relatively well as they play catch-up to Treasuries.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

GEORGE FISCHER ON THE FUND'S
BENCHMARK INDEX AND ITS ROLE
IN MANAGING THE FUND:
"I use the Lehman Brothers
Connecticut 4 Plus Year Enhanced
Municipal Bond Index as a
representation of the overall market
in which the fund invests. The
index includes most of the
universe of Connecticut municipal
bonds. I manage the fund to have
similar overall interest-rate risk to
its benchmark index, but beyond
that, the fund can vary
significantly from the index. With
respect to sector, issuer and
structural composition, the
fund's holdings reflect our
research conclusions on the
relative value of bonds."
(solid bullet) At the end of the period, about
half of the fund's investments were
insured, meaning that a bond's
timely principal and interest
payments are guaranteed by a
municipal bond insurer. Insured
bond prices, like other bond
prices, rise and fall with interest-
rate moves, supply and demand,
and other factors.
FUND FACTS
GOAL: to provide high current
tax-free income for Connecticut
residents
FUND NUMBER: 407
TRADING SYMBOL: FICNX
START DATE: October 29, 1987
SIZE: as of May 31, 1998,
more than $355 million
MANAGER: George Fischer,
since 1996; manager, various
Fidelity and Spartan municipal
income funds; joined Fidelity
in 1989
(checkmark)
SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

INVESTMENT CHANGES

TOP FIVE SECTORS AS OF MAY 31, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO

GENERAL OBLIGATION 36.4 34.8

HEALTH CARE 11.5 11.8

ESCROWED/PRE-REFUNDED 10.8 9.8

SPECIAL TAX 9.8 8.5

EDUCATION 9.4 10.5

AVERAGE YEARS TO MATURITY AS OF MAY 31, 1998
6 MONTHS AGO

YEARS 12.0 11.6

AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF MAY 31, 1998
6 MONTHS AGO

YEARS 6.5 6.8

DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION (MOODY'S RATINGS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
AAA 64.0%
AA, A 23.3%
BAA 10.9%
NON-RATED 0.0%
SHORT-TERM
INVESTMENTS 1.8%
AAA 57.0%
AA, A 27.4%
BAA 10.7%
NON-RATED 2.2%
SHORT-TERM
INVESTMENTS 5.4%
ROW: 1, COL: 1, VALUE: 64.0
ROW: 1, COL: 2, VALUE: 23.1
ROW: 1, COL: 3, VALUE: 10.9
ROW: 1, COL: 4, VALUE: 0.0
ROW: 1, COL: 5, VALUE: 2.0
ROW: 1, COL: 6, VALUE: NIL
ROW: 1, COL: 1, VALUE: 57.0
ROW: 1, COL: 2, VALUE: 27.4
ROW: 1, COL: 3, VALUE: 10.7
ROW: 1, COL: 4, VALUE: 2.2
ROW: 1, COL: 5, VALUE: 5.4
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A
PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

INVESTMENTS MAY 31, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS

MUNICIPAL BONDS - 98.2%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 87.8%
Branford Gen. Oblig. Unltd. Tax:
7% 6/15/08 (FGIC Insured) Aaa $ 500,000 $ 600,745
7% 6/15/09 (FGIC Insured) Aaa 500,000 610,555
Bridgeport Gen. Oblig.:
Rfdg. Series A:
6% 9/1/03 (AMBAC Insured) Aaa 4,475,000 4,862,222
6% 9/1/05 (AMBAC Insured) Aaa 4,000,000 4,421,960
6.50% 9/1/07 (AMBAC Insured) Aaa 2,290,000 2,654,637
Series A:
5.40% 9/1/08 (AMBAC Insured)
(Pre-Refunded to 9/1/05 @ 101) (d) Aaa 550,000 594,886
5.50% 9/1/09 (AMBAC Insured)
(Pre-Refunded to 9/1/05 @ 101) (d) Aaa 550,000 598,290
5.60% 9/1/10 (AMBAC Insured)
(Pre-Refunded to 9/1/05 @ 101) (d) Aaa 550,000 601,695
5.70% 9/1/11 (AMBAC Insured)
(Pre-Refunded to 9/1/05 @ 101) (d) Aaa 550,000 605,099
5.70% 9/1/15 (AMBAC Insured)
(Pre-Refunded to 9/1/05 @ 101) (d) Aaa 2,000,000 2,193,800
Unltd. Tax Series A:
7.40% 3/1/00
(Pre-Refunded to 3/1/99 @ 102) (d) Baa 1,080,000 1,129,421
7.625% 1/15/09
(Pre-Refunded to 3/1/99 @ 102) (d) Baa 1,500,000 1,573,215
8.75% 8/15/05 (FGIC Insured) Aaa 670,000 851,074
Connecticut Clean Wtr. Fund Rev.:
Series 1991, 7% 1/1/11 Aaa 2,500,000 2,717,350
5.875% 11/1/03 Aaa 1,000,000 1,085,580
5.875% 5/1/04 Aaa 1,000,000 1,089,950
6.80% 7/1/05 Aaa 1,000,000 1,085,950
5.75% 3/1/07 Aaa 2,615,000 2,881,442
6% 10/1/12 (e) Aaa 6,000,000 6,845,940
Connecticut College Savings Plan
(Cap. Appreciation):
Series A:
0% 5/15/07 Aa3 2,250,000 1,505,340
0% 12/1/07 Aa3 4,000,000 2,611,720
Series B, 0% 11/1/06 Aa3 2,800,000 1,928,584
Unltd. Tax Series B, 0% 11/1/09 Aa3 7,000,000 4,157,160
Connecticut Dev. Auth. Health Care Proj. Rfdg.
(Duncaster, Inc. Proj.) 6.75% 9/1/15 A2 3,000,000 3,237,150
Connecticut Dev. Auth. Poll. Cont. Rev.
(New England Pwr. Co. Proj.) 7.25% 10/15/15 A1 3,000,000 3,179,250
Connecticut Dev. Auth. Rev. Series A:
6% 11/15/07 A1 1,525,000 1,718,843
6% 11/15/08 A1 1,525,000 1,728,435
6% 11/15/09 A1 1,525,000 1,728,908
4.75% 11/15/13 A1 1,525,000 1,511,504
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Economic Recovery Rfdg. Notes
5% 6/15/98 Aa3 $ 1,000,000 $ 1,000,390
Connecticut Gen. Oblig.:
Series A:
6% 3/15/01 Aa3 2,405,000 2,529,026
6.10% 3/15/02 Aa3 3,000,000 3,205,890
7% 3/15/03 Aa3 3,000,000 3,353,820
Series B, 6% 10/1/05 Aa3 6,430,000 7,115,117
Connecticut Health & Edl. Facs. Auth. Rev.:
(Ashlar Village Inc.) Series A, 5% 7/1/20
(AMBAC Insured) Aaa 2,400,000 2,352,840
(Bristol Hosp.) Series A:
7% 7/1/09 (MBIA Insured) Aaa 1,750,000 1,878,170
7% 7/1/20 (MBIA Insured) Aaa 4,180,000 4,480,082
(Choate Rosemary Hall) Series B, 5% 7/1/27
(MBIA Insured) Aaa 3,000,000 2,933,070
(Connecticut College Issue)
Series B, 6.625% 7/1/11 (MBIA Insured)
(Pre-Refunded to 7/1/01 @ 102) (d) Aaa 1,200,000 1,311,564
(Greenwich Hospital) Series A, 5.80% 7/1/26
(MBIA Insured) Aaa 5,400,000 5,714,172
(Hosp. for Spl. Care)
Series B, 5.375% 7/1/17 Baa2 2,700,000 2,704,320
(HSC Commty. Services Inc.)
Series B, 5.50% 7/1/27 Baa2 2,500,000 2,509,100
(Kent School) Series B:
5.10% 7/1/07 (MBIA Insured) Aaa 265,000 277,617
5.25% 7/1/08 (MBIA Insured) Aaa 305,000 321,327
5.375% 7/1/09 (MBIA Insured) Aaa 345,000 364,982
5.40% 7/1/10 (MBIA Insured) Aaa 685,000 725,703
(Loomis Chaffee School) Series C,
5.50% 7/1/26 (MBIA Insured) Aaa 1,430,000 1,468,238
(Lutheran Gen. Health Care Sys./Parkside Lodges)
7.375% 7/1/19 (Escrowed to Maturity) (d) Aaa 3,195,000 3,886,430
(New Britain Mem. Hosp.)
Series A, 7.75% 7/1/22 Aaa 6,500,000 7,492,420
(Quinnipiac College):
Series C, 7.75% 7/1/20
(Pre-Refunded to 7/1/00 @ 102) (d) BBB- 1,940,000 2,120,110
Rfdg. Series D:
6% 7/1/13 BBB- 3,500,000 3,596,880
6% 7/1/23 BBB- 1,975,000 2,018,055
(Sacred Heart Univ.):
Series A, 6.85% 7/1/22,
LOC Fleet Nat'l. Bank
(Pre-Refunded to 7/1/02 @ 102) (d) Baa3 1,000,000 1,117,200
Series B, 5.50% 7/1/09 Baa3 1,500,000 1,519,980
Series C:
6% 7/1/06 Baa3 250,000 264,420
6.50% 7/1/16 Baa3 4,000,000 4,345,520
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Health & Edl. Facs. Auth. Rev.: - continued
(St. Mary's Hosp.) Series B, 7.60% 7/1/03
(Pre-Refunded to 7/1/98 @ 102) (d) Aaa $ 900,000 $ 920,682
(St. Raphael Hosp.) Series H:
6.50% 7/1/11 (AMBAC Insured) Aaa 2,780,000 3,273,089
6.50% 7/1/13 (AMBAC Insured) Aaa 3,125,000 3,708,688
5.25% 7/1/14 (AMBAC Insured) Aaa 4,400,000 4,619,428
(Sharon Healthcare Inc.) Series A:
8.75% 7/1/06
(Pre-Refunded to 7/1/01 @ 103) (d) Aaa 450,000 523,247
9% 7/1/13
(Pre-Refunded to 7/1/01 @ 103) (d) Aaa 1,300,000 1,518,855
9.20% 7/1/21
(Pre-Refunded to 7/1/01 @ 103) (d) Aaa 1,500,000 1,761,120
(Veterans Memorial Med. Ctr.) Series A:
6.25% 7/1/05 (MBIA Insured) Aaa 2,265,000 2,520,356
5.50% 7/1/26 (MBIA Insured) Aaa 2,275,000 2,335,834
(Yale-New Haven Hosp.):
Series H, 6% 7/1/03 (MBIA Insured) Aaa 1,000,000 1,081,670
5.929% 6/10/30 Aaa 10,000,000 10,613,900
Connecticut Higher Ed. Supplemental Loan Auth.
Rev. Series A:
7.375% 11/15/05 (b) A1 475,000 488,761
7.50% 11/15/10 (b) A1 1,635,000 1,682,677
(Family Ed. Loan Prog.)
7.20% 11/15/10 (b) A 810,000 863,760
Connecticut Hsg. Fin. Auth. Hsg. Mtg. Fin. Prog.:
Series A, Subseries A-2,
6.45% 5/15/22 (b) Aa2 5,500,000 5,887,585
Series B, 6.20% 5/15/12 Aa2 2,500,000 2,643,900
Series E, 6.20% 5/15/14 Aa2 1,000,000 1,067,960
Series E, Subseries E-1, 6.30% 5/15/17 Aa2 1,950,000 2,096,114
Connecticut Muni. Elec. Energy Coop. Pwr.
Supply Sys. Rev. Rfdg. Series A:
6% 1/1/04 (MBIA Insured) Aaa 3,190,000 3,467,115
6% 1/1/05 (MBIA Insured) Aaa 3,380,000 3,699,782
6% 1/1/06 (MBIA Insured) Aaa 2,000,000 2,207,140
Connecticut Resource Recovery Auth. Corp. Credit
(American Refuse Fuel Co.) Series A,
8.10% 11/15/15 (b) Baa1 4,500,000 4,717,170
Connecticut Resource Recovery Auth. Rfdg.
(Mid-Connecticut Sys.) Series A:
5.25% 11/15/08 (MBIA Insured) Aaa 4,000,000 4,239,360
5.375% 11/15/10 (MBIA Insured) Aaa 1,000,000 1,057,340
5.50% 11/15/11 (MBIA Insured) Aaa 2,500,000 2,658,325
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Spl. Assignment Unemployment
Compensation Advisor Fund Rev. Rfdg.
(Connecticut Unemployment) Series A,
5.50% 11/15/00 (AMBAC Insured) Aaa $ 2,000,000 $ 2,073,560
Connecticut Spl. Tax. Oblig. Rev.
(Trans. Infrastructure):
Series A:
6.50% 6/1/03 Aaa 2,800,000 3,094,056
5.50% 11/1/06 (FSA Insured) Aaa 1,925,000 2,075,651
7.125% 6/1/10 A1 3,550,000 4,346,372
6.75% 6/1/11
(Pre-Refunded to 6/1/03 @ 100) (d) Aaa 2,395,000 2,673,275
Series B:
(Cap. Appreciation) 0% 6/1/08 A1 3,500,000 2,236,815
6.50% 10/1/07 A1 2,250,000 2,609,055
6.15% 9/1/09 A1 1,500,000 1,705,995
6.50% 10/1/10 A1 3,250,000 3,818,393
6.125% 9/1/12 A1 5,000,000 5,715,850
6.50% 10/1/12 A1 4,000,000 4,730,000
Eastern Connecticut Resource Recovery Auth.
Solid Waste Rev. (Wheelabrator Lisbon Proj.)
Series A, 5% 1/1/04 (b) BBB 1,000,000 1,012,300
Meriden Gen. Oblig. Unltd. Tax:
6.25% 8/1/05 (FGIC Insured) Aaa 2,000,000 2,239,460
6.25% 8/1/06 (FGIC Insured) Aaa 2,000,000 2,260,460
7% 10/1/07 (MBIA Insured) Aaa 500,000 597,070
Naugatuck Gen. Oblig. Unltd. Tax:
7.25% 9/1/04 (MBIA Insured) Aaa 215,000 250,146
6.90% 6/15/07 (FGIC Insured) Aaa 485,000 575,157
7.40% 9/1/07 (MBIA Insured) Aaa 370,000 452,432
7.40% 9/1/08 (MBIA Insured) Aaa 370,000 457,827
New Britain Gen. Oblig. Unltd. Tax:
Rfdg. 6% 2/1/12 (MBIA Insured) Aaa 400,000 452,752
Series B, 6% 3/1/12 (MBIA Insured) Aaa 2,000,000 2,264,900
6% 4/15/06 (AMBAC Insured) Aaa 1,615,000 1,792,198
7% 4/1/07 (MBIA Insured) Aaa 580,000 687,625
6% 4/15/07 (AMBAC Insured) Aaa 1,615,000 1,804,666
7% 4/1/08 (MBIA Insured) Aaa 580,000 694,904
5% 2/1/12 (MBIA Insured) Aaa 885,000 913,081
5% 2/1/13 (MBIA Insured) Aaa 885,000 909,842
New Haven Gen. Oblig.:
Rfdg. Series A, 5% 8/1/09 (FGIC Insured) Aaa 1,775,000 1,842,752
Series A, 7.40% 3/1/12
(Pre-Refunded to 3/1/02 @ 102) (d) Baa1 1,000,000 1,130,560
8.25% 8/15/01 Baa1 2,590,000 2,774,952
7% 2/15/03 (FGIC Insured) Aaa 1,000,000 1,118,320
7% 2/15/04 (FGIC Insured) Aaa 1,150,000 1,308,930
6% 2/15/05 (FGIC Insured) Aaa 1,650,000 1,812,608
7% 2/15/05 (FGIC Insured) Aaa 1,250,000 1,441,413
6% 8/1/05 (FGIC Insured) Aaa 3,410,000 3,766,175
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Newtown Gen. Oblig.:
6% 6/15/05 (MBIA Insured) Aaa $ 1,700,000 $ 1,874,896
6% 6/15/06 (MBIA Insured) Aaa 1,700,000 1,889,958
North Thompsonville Fire Dist. #10 Unltd. Tax:
6.75% 6/1/07 (MBIA Insured) Aaa 180,000 210,769
6.75% 6/1/08 (MBIA Insured) Aaa 190,000 224,540
6.75% 6/1/09 (MBIA Insured) Aaa 200,000 238,248
6.75% 6/1/10 (MBIA Insured) Aaa 215,000 256,759
6.75% 6/1/11 (MBIA Insured) Aaa 230,000 276,173
South Central Connecticut Reg'l. Wtr. Auth. Wtr.
Sys. Rev. 11th Series:
5.625% 8/1/05 (FGIC Insured) Aaa 5,000,000 5,399,200
5.75% 8/1/12 (FGIC Insured) Aaa 5,000,000 5,333,950
Stamford Gen. Oblig. Unltd. Tax:
6.25% 2/15/03 Aaa 1,725,000 1,882,113
6.25% 2/15/04 Aaa 1,725,000 1,907,678
6.25% 2/15/05 Aaa 1,190,000 1,331,086
6.25% 2/15/05 Aaa 535,000 596,439
6.60% 1/15/07 Aaa 295,000 342,808
6.60% 1/15/08 Aaa 1,480,000 1,737,476
6.60% 1/15/09 Aaa 1,000,000 1,190,250
5.25% 7/15/12 Aaa 1,580,000 1,651,147
Stratford Gen. Oblig. Unltd. Tax
7% 6/15/08 (FGIC Insured) Aaa 500,000 600,745
Univ. of Connecticut Series A,
5.50% 2/1/06 (FGIC Insured) Aaa 3,070,000 3,300,097
West Hartford Gen. Oblig. Unltd. Tax:
6.50% 7/15/05 Aaa 2,000,000 2,272,560
6.50% 7/15/06 Aaa 2,000,000 2,294,680
5% 7/15/11 Aaa 2,000,000 2,053,420
West Haven Gen. Oblig. Impt. Unltd. Tax
6.70% 2/15/04 (MBIA Insured) Aaa 710,000 799,346
Wolcott Gen. Oblig. Unltd. Tax:
7% 6/15/09 (FGIC Insured) Aaa 445,000 543,394
7% 6/15/10 (FGIC Insured) Aaa 440,000 540,329
Woodstock Spl. Oblig. Rev. (Woodstock Academy)
7% 3/1/08 (AMBAC Insured) Aaa 725,000 779,477
307,738,096
GUAM - 0.7%
Guam Gov't Ltd. Oblig. Rev. Infrastructure Impt.
Series A, 5.25% 11/1/09 (AMBAC Insured) Aaa 2,400,000 2,589,540
PUERTO RICO - 9.7%
Puerto Rico Commonwealth Gen. Oblig.
Unltd. Tax 6.40% 7/1/11 Aaa 1,500,000 1,701,450
Puerto Rico Commonwealth Hwy. & Trans. Auth.
Hwy. Rev. Rfdg. Series V, 6.625% 7/1/12 Baa1 1,750,000 1,912,243
MUNICIPAL BONDS - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - CONTINUED
Puerto Rico Commonwealth Infrastructure Fing. Auth.:
Series A, 5.25% 7/1/0 Aaa $ 11,065,000 $ 11,667,932
5% 7/1/28 (AMBAC Insured) Aaa 5,000,000 4,924,600
Puerto Rico Commonwealth Urban Renewal &
Hsg. Corp. Commonwealth Appropriation Rfdg.
0% 10/1/98 Baa 3,800,000 3,756,300
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Rfdg.:
Series AA, 5.375% 7/1/14 (MBIA Insured) Aaa 3,500,000 3,636,290
Series W, 7% 7/1/07 (MBIA Insured) Aaa 2,000,000 2,393,060
Series Y, 7% 7/1/07 (MBIA Insured) Aaa 2,000,000 2,393,060
Puerto Rico Ind. Med. & Envir. Poll. Cont. Facs.
Fing. Auth. Rev. (Motorola, Inc. Proj.)
Series A, 6.75% 1/1/14 (f) Aa3 1,285,000 1,413,731
33,798,666
TOTAL MUNICIPAL BONDS
(Cost $321,145,739) 344,126,302
MUNICIPAL NOTES (A) - 1.8%
CONNECTICUT - 1.8%
Connecticut Area Ed. Svcs. (Reg. Ed. Facs.)
BAN 4.50% 2/16/99 -- 500,000 501,490
Connecticut Gen. Oblig. Series B, 3.75%
(BPA Bayerische Landesbank Girozentrale) VRDN VMIG 1 1,500,000
1,500,000
Connecticut Health & Ed. Facs. Auth. (Yale Univ.):
Series T, 3.70%, VRDN VMIG 1 500,000 500,000
Series T-2, 3.80%, VRDN VMIG 1 1,100,000 1,100,000
Connecticut Hsg. Fin. Auth. (Multi-Family Hsg.)
3.70% (AMBAC Insured) VRDN VMIG 1 600,000 600,000
Connecticut Spl. Tax Oblig. Rev. (2nd Lien)
(Trans. Infrastructure) Series 1, 3.85%,
LOC Commerzbank AG, VRDN VMIG 1 2,200,000 2,200,000
TOTAL MUNICIPAL NOTES
(Cost $6,401,716) 6,401,490
TOTAL INVESTMENTS - 100%
(Cost $327,547,455) $ 350,527,792
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
PURCHASED DATE AMOUNT AT VALUE GAIN/(LOSS)
61 Municipal Bond Contracts June 98 $ 7,450,178 $ 117,634
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENTS - 2.1%.
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(e) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(f) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(g) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(h) Security collateralized by an amount sufficient to pay interest
and principal.
(i) Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $519,150.
(j) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
At the period end, the value of these securities amounted to
$1,413,731 or 0.4% of net assets.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 83.3% AAA, AA, A 86.5%
Baa 8.4% BBB 8.4%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 36.4%
Health Care 11.5
Escrowed/Pre-Refunded 10.8
Special Tax 9.8
Education 9.4
Water & Sewer 7.6
Electric Revenue 6.0
Others (individually less than 5%) 8.5
TOTAL 100.0%
INCOME TAX INFORMATION
At May 31, 1998, the aggregate cost of investment securities for
income tax purposes was $327,547,455. Net unrealized appreciation
aggregated $22,980,337, of which $23,017,354 related to appreciated
investment securities and $37,017 related to depreciated investment
securities.
At November 30, 1997, the fund was required to defer approximately
$1,724,000 of losses on futures contracts.
SPARTAN CONNECTICUT MUNICIPAL INCOME FUND

FINANCIAL STATEMENTS

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STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE (COST $327,547,455) - $ 350,527,792
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR INVESTMENTS SOLD 502,857

RECEIVABLE FOR FUND SHARES SOLD 78,861

INTEREST RECEIVABLE 5,393,257

REDEMPTION FEES RECEIVABLE 220

RECEIVABLE FOR DAILY VARIATION ON FUTURES CONTRACTS 11,437

TOTAL ASSETS 356,514,424

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 57,739

PAYABLE FOR FUND SHARES REDEEMED 359,552

DISTRIBUTIONS PAYABLE 317,103

ACCRUED MANAGEMENT FEE 164,574

OTHER PAYABLES AND ACCRUED EXPENSES 5,607

TOTAL LIABILITIES 904,575

NET ASSETS $ 355,609,849

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 333,431,964

ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) (920,086)
ON INVESTMENTS

NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 23,097,971

NET ASSETS, FOR 31,068,031 SHARES OUTSTANDING $ 355,609,849

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $11.45
SHARE ($355,609,849 (DIVIDED BY) 31,068,031 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 9,267,727

EXPENSES

MANAGEMENT FEE $ 957,160

NON-INTERESTED TRUSTEES' COMPENSATION 1,484

TOTAL EXPENSES BEFORE REDUCTIONS 958,644

EXPENSE REDUCTIONS (16,498) 942,146

NET INTEREST INCOME 8,325,581

REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:

INVESTMENT SECURITIES 612,840

FUTURES CONTRACTS 517,323 1,130,163

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:

INVESTMENT SECURITIES 2,660,665

FUTURES CONTRACTS (118,342) 2,542,323

NET GAIN (LOSS) 3,672,486

NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 11,998,067
FROM OPERATIONS

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 8,325,581 $ 16,545,675
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 1,130,163 3,116,746

CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 2,542,323 2,468,912

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 11,998,067 22,131,333
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS (8,325,581) (16,545,675)
FROM NET INTEREST INCOME

FROM NET REALIZED GAIN (2,984,295) (296,996)

TOTAL DISTRIBUTIONS (11,309,876) (16,842,671)

SHARE TRANSACTIONS 27,011,056 36,769,472
NET PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS 8,863,403 13,074,818

COST OF SHARES REDEEMED (22,589,904) (48,132,709)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 13,284,555 1,711,581
SHARE TRANSACTIONS

REDEMPTION FEES 4,275 12,580

TOTAL INCREASE (DECREASE) IN NET ASSETS 13,977,021 7,012,823

NET ASSETS

BEGINNING OF PERIOD 341,632,828 334,620,005

END OF PERIOD $ 355,609,849 $ 341,632,828

OTHER INFORMATION
SHARES

SOLD 2,358,539 3,288,068

ISSUED IN REINVESTMENT OF DISTRIBUTIONS 774,435 1,166,635

REDEEMED (1,972,607) (4,311,130)

NET INCREASE (DECREASE) 1,160,367 143,573

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1998

(UNAUDITED) 1997 1996 1995 1994 E 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, BEGINNING $ 11.420 $ 11.240 $ 11.200 $ 9.960 $ 11.840 $ 11.220
OF PERIOD

INCOME FROM INVESTMENT .273 .559 .569 .617 .640 .680
OPERATIONS
NET INTEREST INCOME

NET REALIZED AND .130 .190 .039 1.270 (1.472) .619
UNREALIZED GAIN (LOSS)

TOTAL FROM INVESTMENT .403 .749 .608 1.887 (.832) 1.299
OPERATIONS

LESS DISTRIBUTIONS

FROM NET INTEREST INCOME (.273) (.559) (.569) (.617) (.640) (.680)

FROM NET REALIZED GAIN (.100) (.010) - (.020) (.410) -

IN EXCESS OF NET - - - (.010) - -
REALIZED GAIN

TOTAL DISTRIBUTIONS (.373) (.569) (.569) (.647) (1.050) (.680)

REDEMPTION FEES ADDED .000 .000 .001 .000 .002 .001
TO PAID IN CAPITAL

NET ASSET VALUE, $ 11.450 $ 11.420 $ 11.240 $ 11.200 $ 9.960 $ 11.840
END OF PERIOD

TOTAL RETURN B, C 3.57% 6.88% 5.65% 19.41% (7.61)% 11.81%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD $ 355,610 $ 341,633 $ 334,620 $ 358,849 $ 315,582 $ 450,113
(000 OMITTED)

RATIO OF EXPENSES TO .55% A .55% .55% .55% .55% .55%
AVERAGE NET ASSETS

RATIO OF EXPENSES TO .54% A, D .55% .52% D .55% .55% .55%
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS

RATIO OF NET INTEREST INCOME 4.78% A 4.98% 5.15% 5.73% 5.83% 5.81%
TO AVERAGE NET ASSETS

PORTFOLIO TURNOVER RATE 7% A 12% 30% 39% 11% 45%

</TABLE>

A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
C TOTAL RETURNS DO NOT INCLUDE THE FORMER ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
E EFFECTIVE DECEMBER 31, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

PERFORMANCE: THE BOTTOM LINE

To measure a money market fund's performance, you can look at either
total return or yield. Total return reflects the change in value of an
investment, assuming reinvestment of the fund's dividend income and
the effect of the fund's $5 account closeout fee on an average-sized
account. Yield measures the income paid by a fund. Since a money
market fund tries to maintain a $1 share price, yield is an important
measure of performance. If Fidelity had not reimbursed certain fund
expenses, the past five years and life of fund total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

SPARTAN CT MUNICIPAL MONEY MARKET 1.56% 3.16% 15.36% 23.87%

CONNECTICUT TAX-FREE 1.42% 2.93% 14.23% 21.63%
MONEY MARKET FUNDS AVERAGE

CUMULATIVE TOTAL RETURNS show the fund's performance over a set period
- - in this case, six months, one year, five years or since the fund
started on March 4, 1991. For example, if you had invested $1,000 in a
fund that had a 5% return over the past year, the value of your
investment would be $1,050. To measure how the fund's performance
stacked up against its peers, you can compare it to the Connecticut
tax-free money market funds average, which reflects the performance of
11 mutual funds with similar objectives tracked by IBC Financial Data,
Inc. over the past six months. (The periods covered by the IBC
Financial Data, Inc. numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

SPARTAN CT MUNICIPAL MONEY MARKET 3.16% 2.90% 3.00%

CONNECTICUT TAX-FREE 2.93% 2.77% 2.73%
MONEY MARKET FUNDS AVERAGE

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
6/1/98 3/2/98 12/1/97 9/1/97 6/2/97

SPARTAN CONNECTICUT 3.30% 2.96% 3.25% 2.90% 3.26%
MUNICIPAL MONEY
MARKET FUND

CONNECTICUT TAX-FREE 2.97% 2.67% 3.04% 2.77% 2.91%
MONEY MARKET FUNDS AVERAGE

SPARTAN CONNECTICUT 5.39% 4.83% 5.32% 4.73% 5.31%
MUNICIPAL MONEY
MARKET FUND -
TAX-EQUIVALENT

PORTION OF FUND'S INCOME 4.13% 4.54% 0.00% 5.32% 9.73%
SUBJECT TO STATE TAXES

YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
Connecticut tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1998 federal and state
income tax rate of 38.88% and reflects that a portion of the fund's
income was subject to state taxes. A portion of the fund's income may
be subject to the Federal alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However, a
straight comparison between the
two may be misleading because
it ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'd have to
earn on a similar taxable
investment to match the tax-free
yield - makes the comparison
more meaningful. Keep in mind
that the U.S. government neither
insures nor guarantees a money
market fund. In fact, there is
no assurance that a money
market fund will maintain a
$1 share price.
(checkmark)
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Orr, Portfolio Manager of Spartan Connecticut
Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. During much of the period, investors tried to determine when the
Federal Reserve Board might raise the fed funds rate - the rate banks
charge each other for overnight loans - as a way to slow the economy
and thus head off inflation. The economy continued to chug along at a
fairly strong pace and unemployment numbers were incredibly low -
coming in at 4.3% in April. But despite this period of continuing
expansion, wage pressures did not arise and inflation remained benign.
Under normal circumstances, the possibility of future inflation
created by these low unemployment numbers likely would have led the
Fed to raise rates. But economic and political turmoil in Asia kept
the Fed on the sidelines during the period. In fact, the fed funds
rate has remained unchanged at 5.5% for more than a year now.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. First of all, the Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here, especially
considering the political and financial unrest in countries such as
Indonesia at the end of the period. An increase in short-term rates in
the U.S. would likely strengthen the U.S. dollar even more versus
Asian currencies, which could further impact their markets. In other
words, the Fed was asking itself, "Why make the Asian markets more
volatile by raising rates in the U.S.?" Second, there was the
possibility that the Asian turmoil would translate into a reduction of
U.S. net exports, which would likely have a dampening effect of its
own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. The fund's average maturity was 67 days at the beginning of the
period. From that point, I reduced the average maturity by purchasing
short-term variable-rate paper when long-term notes weren't offering
attractive yields. However, the fund's maturity went up and down quite
a few times during the period; whenever I felt that concerns about an
interest-rate increase were built into the market, I bought fixed-rate
notes to lock in higher yields. At the end of the period, a lack of
supply in the one-year fixed-rate Connecticut market led me to
purchase more variable-rate issues, which reduced the fund's maturity
to 52 days at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1998, was 3.29%, compared to
3.26% six months ago. The more recent seven-day yield was the
equivalent of a 5.38% taxable rate of return for Connecticut investors
in the 38.88% combined state and federal income tax bracket. Through
May 31, 1998, the fund's six-month total return was 1.56%, compared to
1.42% for the Connecticut tax-free money market funds average,
according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. The future of Asia is the most important wildcard. If we continue
to see the same level of turmoil there, I believe the Fed may be
obligated to stay on the sidelines, keeping interest rates unchanged.
There's a lot of risk that a rate increase in the U.S. could cause
increased volatility in global markets. Without a rate increase, the
U.S. economy still might slow as a result of fewer U.S. exports. In
this case, the Asian situation would do the Fed's job for it. The
strength of the U.S. economy, in light of the Asian situation, has
left the Fed at an impasse. And, although I believe the next Fed move
will be to raise rates, I don't believe it will be any time soon. The
only factor that could change the Fed's stance in the next few months
would be real signs of inflation - wage pressures as reflected in the
employment cost index or higher-than-expected increases in the
consumer price index or the producer price index. At that point, the
Fed may risk causing more problems in Asia to keep the U.S. economy on
good footing.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income while maintaining
share price stability by investing
mainly in high-quality, short-term
Connecticut municipal money
market securities
FUND NUMBER: 425
TRADING SYMBOL: SPCXX
START DATE: March 4, 1991
SIZE: as of May 31, 1998,
more than $175 million
MANAGER: Scott Orr, since
July 1997; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1989
(checkmark)
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/98 11/30/97 5/31/97

0 - 30 61 58 62

31 - 90 16 12 24

91 - 180 14 11 3

181 - 397 9 19 11

WEIGHTED AVERAGE MATURITY
5/31/98 11/30/97 5/31/97

SPARTAN CONNECTICUT MUNICIPAL 52 DAYS 67 DAYS 48 DAYS
MONEY MARKET FUND

CONNECTICUT TAX-FREE 43 DAYS 58 DAYS 46 DAYS
MONEY MARKET FUNDS AVERAGE*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
ROW: 1, COL: 1, VALUE: 9.0
ROW: 1, COL: 2, VALUE: 15.0
ROW: 1, COL: 3, VALUE: 9.0
ROW: 1, COL: 4, VALUE: 13.0
ROW: 1, COL: 5, VALUE: 54.0
VARIABLE RATE DEMAND
NOTES (VRDNS) 57%
COMMERCIAL PAPER
(INCLUDING CP MODE) 12%
TENDER BONDS 10%
MUNICIPAL NOTES 16%
OTHER 5%
VARIABLE RATE DEMAND
NOTES (VRDNS) 54%
COMMERCIAL PAPER
(INCLUDING CP MODE) 13%
TENDER BONDS 9%
MUNICIPAL NOTES 15%
OTHER 9%
ROW: 1, COL: 1, VALUE: 5.0
ROW: 1, COL: 2, VALUE: 16.0
ROW: 1, COL: 3, VALUE: 10.0
ROW: 1, COL: 4, VALUE: 12.0
ROW: 1, COL: 5, VALUE: 57.0
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

INVESTMENTS MAY 31, 1997 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 88.5%
Avon Gen. Oblig. BAN 3.75% 7/15/98 $ 2,100,000 $ 2,100,623
Cheshire Gen. Oblig. BAN 4.25% 8/7/98 3,400,000 3,403,123
Clipper Tax Exempt Trust Participating VRDN,
Series 94-1, 3.87% (Liquidity Facility State
Street Bank & Trust Co.) (c) 3,847,590 3,847,590
Connecticut Area Coop. Ed. Svcs. Reg. (Spl. Ed. Facs.)
BAN 4.50% 2/16/99 1,500,000 1,505,128
Connecticut Dev. Auth. Arpt. Facs. Rev.
(Bradley Arpt. Hotel):
Series 1997 A, 3.70%, LOC Kredietbank N.V. VRDN 1,200,000
1,200,000
Series 1997 B, 3.70%,
LOC Royal Bank of Canada, VRDN 1,000,000 1,000,000
Series 1997 C, 3.70%, LOC Fleet Nat'l. Bank, VRDN 470,000 470,000
Connecticut Dev. Auth. Health. Care Rev. (Corp. for
Independent Living Proj.) Series 1990, 3.70%,
LOC Chase Manhattan Bank, VRDN 8,300,000 8,300,000
Connecticut Dev. Auth. Ind. Dev. Rev. VRDN:
(Rojo Enterprises LLC) 4.10%, LOC Fleet Bank NA 1,000,000 1,000,000
(W.E. Bassett Co. Proj.) Series 1986, 4.10%,
LOC Bank of Boston (b) 900,000 900,000
Connecticut Dev. Auth. Poll. Cont. Rev., VRDN:
(Connecticut Lt. & Pwr. Co. Proj.):
Series 1993 A, 3.80%, LOC Deutsche Bank 3,400,000 3,400,000
Series 1993 B, 3.85%,
LOC Union Bank of Switzerland (b) 200,000 200,000
Series 1996 A, 3.85% (AMBAC Insured)
(BPA Society Generale) (b) 4,200,000 4,200,000
(United Illuminating Co.) Series 1996A, 3.80%,
LOC Canadian Imperial Bank of Commerce, VRDN (b) 1,300,000
1,300,000
Connecticut Dev. Auth. Solid Waste Disp. Facs. Rev.
(Exeter Energy Proj.) VRDN:
Series 1989 A, 4.60%, LOC Sanwa Bank (b) 3,500,000 3,500,000
Series 1989 B, 4.60%, LOC Sanwa Bank (b) 2,800,000 2,800,000
Series 1989 C, 4.60%, LOC Sanwa Bank (b) 400,000 400,000
Connecticut Gen. Oblig.:
Bonds:
Rfdg. Econ. Recovery 5% 6/15/98 1,000,000 1,000,464
Series 1997C, 5% 8/1/98 4,100,000 4,108,040
Series 1998 B, 4% 3/15/99 3,600,000 3,614,301
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Gen. Oblig.: - continued
Participating VRDN (c):
Series E-6, 3.80%
(Liquidity Facility Morgan Guaranty Trust Co.) $ 775,000 $ 775,000
Series 1998-B:
3.80% (Liquidity Facility Bankers Trust Co.) 4,950,000 4,950,000
3.92% (Liquidity Facility Merrill Lynch & Co., Inc.) 1,495,000
1,495,000
Series B, 3.75% (BPA Bayerische Landesbank) VRDN 2,400,000
2,400,000
Connecticut Health & Ed. Facs. Auth. Rev.:
Bonds (Yale Univ.) Series S-2:
3.45% 9/8/98, CP mode 1,000,000 1,000,000
3.55% 9/8/98, CP mode 2,000,000 2,000,000
3.50% 9/9/98, CP mode 2,000,000 2,000,000
3.55% 9/10/98, CP mode 9,000,000 9,000,000
Participating VRDN, (Yale Univ.) Series BT-203, 3.85%
(Liquidity Facility Bankers Trust) (c) 3,000,000 3,000,000
(Bradley Health Care Inc.) Series B, 3.65%,
LOC Fleet Nat'l. Bank, VRDN 1,000,000 1,000,000
Connecticut Hsg. Fin. Auth. Participating VRDN (c):
Series A, 3.92% (Liquidity Facility Merrill Lynch & Co., Inc.)
1,000,000 1,000,000
Series PT-81, 3.94%
(Liquidity Facility Rabobank Nederland, N.V.) (b) 1,460,000
1,460,000
Series PT-1003 3.94% (Liquidity Facility
Merrill Lynch & Co., Inc.) (b) 3,800,000 3,800,000
Series 1997 L, 4.05% (Liquidity Facility CoreStates Bank) (b)
1,800,000 1,800,000
Series 1998, 3.90% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) 1,475,000 1,475,000
Connecticut Hsg. Fin. Auth. (Hsg. Mtg. Fin. Prog.):
Bonds:
Series 1989 D, 3.70% 9/10/98, CP mode(b) 2,475,000 2,475,000
Series 1990 C, 3.65% 9/10/98, CP mode (b) 1,490,000 1,490,000
Series 1995 G, 3.70% (AMBAC Insured)
(BPA Morgan Guarantee) VRDN 4,600,000 4,600,000
Connecticut Muni. Elec. Energy Coop. Rev. Bonds
(Pwr. Supply Sys.) Series 1995 A, CP mode:
3.55% 8/12/98, LOC Fleet Nat'l. Bank 1,100,000 1,100,000
3.65% 8/12/98, LOC Fleet Nat'l. Bank 1,000,000 1,000,000
3.65% 9/8/98, LOC Fleet Nat'l. Bank 2,300,000 2,300,000
Connecticut Reg. School Dist. #14 BAN:
4% 6/4/98 1,700,000 1,700,054
4% 6/1/99 2,100,000 2,106,615
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Spl. Assessment Second Injury Bonds
3.50% 8/27/98, LOC Credit Communale DeBelgique $ 1,000,000 $ 1,000,000
Connecticut Spl. Assessment Unemployment Rev. Bonds
Series 1993 C, 3.90%, tender 7/1/98 (FGIC Insured)
(Liquidity Facility FGIC Security Purchase Inc.) 15,600,000
15,600,000
Connecticut Spl. Tax Oblig. (Trans. Infrastructure Purpose):
Participating VRDN Series BTP-262, 3.75%
(Liquidity Facility Bankers Trust Co.) (c) 5,100,000 5,100,000
Series 1, 3.85%, LOC Commerzbank, VRDN 11,280,000 11,280,000
Coventry Gen. Oblig. BAN 4% 12/15/98 2,225,000 2,228,584
East Hartford Gen. Oblig. BAN 3.75% 1/21/99 3,600,000 3,605,780
East Haven Gen. Oblig. BAN 4.25% 9/1/98 1,000,000 1,000,971
Hartford Redev. Auth. (Underwood Towers Proj.) 3.75%
(FSA Insured) (BPA Barclays Bank) VRDN 2,400,000 2,400,000
Madison Gen. Oblig. BAN 4.22% 11/18/98 1,000,000 1,001,441
Monroe Gen. Oblig. BAN 3.75% 11/4/98 1,645,000 1,647,048
South Windsor Gen. Oblig. BAN 3.75% 3/23/99 3,000,000 3,007,245
Stamford Hsg. Auth. Multimodal Rev. (Morgan Street Proj.)
Series 1994, 3.90%, LOC Deutsche Bank, VRDN (b) 2,500,000 2,500,000
Westport Gen. Oblig. BAN 4% 6/26/98 3,710,000 3,710,997
156,258,004
PUERTO RICO - 7.6%
Puerto Rico Elec. Pwr. Auth. Rev. Participating VRDN
Series 1995-Z, 3.92% (Liquidity Facility
Merrill Lynch & Co., Inc.) (c) 1,900,000 1,900,000
Puerto Rico Infrastructure Fin. Auth. Participating VRDN (c):
Series PA-223, 3.97%
(Liquidity Facility Merrill Lynch & Co., Inc.) 2,225,000 2,225,000
Series 1997 A, 3.75%
(Liquidity Facility CoreStates Bank) 5,385,000 5,385,000
Puerto Rico Pwr. Auth. Pwr. Rev.
(Muni. Sec. Trust Rec. SGA44) Series AA, 3.85%
(Liquidity Facility Societe Generale France) 1,235,000 1,235,000
Puerto Rico Pwr. Auth. Pwr. Rev. Participating VRDN 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) (c) 2,700,000
2,700,000
13,445,000
SHARES
OTHER - 3.9%
Municipal Central Cash Fund (d)(e) 6,957,913 6,957,913
TOTAL INVESTMENTS - 100% $ 176,660,917
Total Cost for Income Tax Purposes $ 176,660,923
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Information in this report regarding holdings by state and
security types do not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of it's most recent fiscal period end is available upon request.
(e) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.89%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
INCOME TAX INFORMATION
At November 30, 1997, the fund had a capital loss carryforward of
approximately $8,272 of which $3,953 and $4,319 will expire on
November 30, 2002 and 2005, respectively.
SPARTAN CONNECTICUT MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE - $ 176,660,917
SEE ACCOMPANYING SCHEDULE

CASH 2,096

RECEIVABLE FOR FUND SHARES SOLD 434,884

INTEREST RECEIVABLE 1,465,753

TOTAL ASSETS 178,563,650

LIABILITIES

PAYABLE FOR INVESTMENTS PURCHASED $ 2,106,615

PAYABLE FOR FUND SHARES SOLD 459,409

DISTRIBUTIONS PAYABLE 4,850

ACCRUED MANAGEMENT FEE 74,448

OTHER PAYABLES AND ACCRUED EXPENSES 1,082

TOTAL LIABILITIES 2,646,404

NET ASSETS $ 175,917,246

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 175,925,481

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (8,235)

NET ASSETS, FOR 175,925,479 SHARES OUTSTANDING $ 175,917,246

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($175,917,246 (DIVIDED BY) 175,925,479 SHARES)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 3,021,794

EXPENSES

MANAGEMENT FEE $ 420,321

NON-INTERESTED TRUSTEES' COMPENSATION 38

TOTAL EXPENSES BEFORE REDUCTIONS 420,359

EXPENSE REDUCTIONS (7,534) 412,825

NET INTEREST INCOME 2,608,969

NET GAIN (LOSS) 37

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,609,006

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 2,608,969 $ 5,619,799
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) 37 (4,319)

INCREASE (DECREASE) IN NET UNREALIZED GAIN FROM ACCRETION - (353)
OF MARKET DISCOUNT

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,609,006 5,615,127
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (2,608,969) (5,619,799)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 105,442,203 156,608,247
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS 2,557,013 5,491,051

COST OF SHARES REDEEMED (95,729,220) (185,421,716)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 12,269,996 (23,322,418)
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 12,270,033 (23,327,090)

NET ASSETS

BEGINNING OF PERIOD 163,647,213 186,974,303

END OF PERIOD $ 175,917,246 $ 163,647,213

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1998

(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE
DATA

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD

INCOME FROM INVESTMENT .016 .031 .030 .034 .023 .022
OPERATIONS
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET INTEREST (.016) (.031) (.030) (.034) (.023) (.022)
INCOME

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD

TOTAL RETURN B, C 1.56% 3.12% 3.08% 3.41% 2.28% 2.21%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF $ 175,917 $ 163,647 $ 186,974 $ 175,622 $ 167,056 $ 163,102
PERIOD (000 OMITTED)

RATIO OF EXPENSES TO .50% A .50% .50% .50% .50% .24% D
AVERAGE NET ASSETS

RATIO OF EXPENSES TO .49% A, E .50% .50% .50% .50% .24%
AVERAGE NET ASSETS
AFTER EXPENSE
REDUCTIONS

RATIO OF NET INTEREST 3.10% A 3.08% 3.04% 3.36% 2.25% 2.17%
INCOME TO AVERAGE
NET ASSETS

</TABLE>

A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
FIDELITY CONNECTICUT MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE

There are several ways to evaluate a money market fund's historical
performance. You can look at either total return or yield. Total
return reflects the change in the value of an investment, assuming
reinvestment of the fund's dividend income. Yield measures the income
paid by a fund. Since a money market fund tries to maintain a $1 share
price, yield is an important measure of performance. If Fidelity had
not reimbursed certain fund expenses, the life of fund total returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

FIDELITY CT MUNICIPAL MONEY MARKET 1.50% 3.07% 14.72% 33.67%

CONNECTICUT TAX-FREE 1.42% 2.93% 14.23% 29.37%
MONEY MARKET FUNDS AVERAGE

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on August 29, 1989. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the Connecticut tax-free money market funds average, which reflects
the performance of money market funds with similar objectives tracked
by IBC Financial Data, Inc. The past six months average represents a
peer group of 11 money market funds. (The periods covered by the IBC
Financial Data, Inc. numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

FIDELITY CT MUNICIPAL MONEY MARKET 3.07% 2.78% 3.37%

CONNECTICUT TAX-FREE 2.93% 2.77% 2.96%
MONEY MARKET FUNDS AVERAGE

AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
6/1/98 3/2/98 12/1/97 9/1/97 6/2/97

FIDELITY CONNECTICUT 3.19% 2.72% 3.19% 2.85% 3.18%
MUNICIPAL MONEY
MARKET FUND

CONNECTICUT TAX-FREE 2.97% 2.67% 3.04% 2.77% 2.91%
MONEY MARKET FUNDS AVERAGE

FIDELITY CONNECTICUT 5.21% 4.45% 5.22% 4.65% 5.19%
MUNICIPAL MONEY
MARKET FUND -
TAX-EQUIVALENT

PORTION OF FUND'S INCOME 3.16% 0.57% 0.66% 4.80% 4.87%
SUBJECT TO STATE TAXES

YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
Connecticut tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1998 federal and state
income tax rate of 38.88% and reflects that a portion of the fund's
income was subject to state taxes. A portion of the fund's income may
be subject to the alternative minimum tax.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However,
a straight comparison between
the two may be misleading
because it ignores the way
taxes reduce taxable returns.
Tax-equivalent yield - the yield
you'd have to earn on a similar
taxable investment to match the
tax-free yield - makes the
comparison more meaningful.
Keep in mind that the U.S.
government neither insures nor
guarantees a money market
fund. In fact, there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
FIDELITY CONNECTICUT MUNICIPAL MONEY MARKET FUND

FUND TALK: THE MANAGER'S OVERVIEW

An interview with Scott Orr, Portfolio Manager of Fidelity Connecticut
Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX
MONTHS?
A. Investors spent much of the period trying to determine when the
Federal Reserve Board might raise the fed funds rate - the rate banks
charge each other for overnight loans - as a way to slow the economy
and thus head off inflation. The economy continued to chug along at a
fairly strong pace and unemployment numbers were incredibly low -
coming in at 4.3% in April. But despite this period of continuing
expansion, wage pressures did not arise and inflation remained benign.
Under normal circumstances, the possibility of future inflation
created by these low unemployment numbers likely would have led the
Fed to raise rates. But economic and political turmoil in Asia kept
the Fed on the sidelines during the period. In fact, the fed funds
rate has remained unchanged at 5.5% for more than a year now.
Q. WHY WAS THE ASIAN TURMOIL ABLE TO OFFSET U.S. ECONOMIC STRENGTH IN
THE FED'S DECISION ON MONETARY POLICY?
A. For two reasons. The Fed didn't want to make the situation in Asia
worse by raising short-term interest rates here, especially
considering the political and financial unrest in countries such as
Indonesia at the end of the period. An increase in short-term rates in
the U.S. would likely strengthen the U.S. dollar even more versus
Asian currencies, which could further impact their markets. In other
words, the Fed was asking itself, "Why make the Asian markets more
volatile by raising rates in the U.S.?" The other factor was the
possibility that the Asian turmoil would translate into a reduction of
U.S. net exports, which would likely have a dampening effect of its
own on the U.S. economy and inflation.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. At the beginning of the period, the fund's average maturity was 59
days. From that point, I reduced the average maturity by purchasing
short-term variable-rate paper when long-term notes weren't offering
attractive yields. However, the fund's maturity went up and down quite
a few times during the period; whenever I felt that concerns about an
interest-rate increase were built into the market, I bought fixed-rate
notes to lock in higher yields. At the end of the period, a lack of
supply in the one-year fixed-rate Connecticut market led me to
purchase more variable-rate issues, which reduced the fund's maturity
to 44 days at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1998, was 3.19%, compared to
3.20% six months ago. The more recent seven-day yield was the
equivalent of a 5.22% taxable rate of return for Connecticut investors
in the 38.88% combined state and federal income tax bracket. Through
May 31, 1998, the fund's six-month total return was 1.50%, compared to
1.42% for the Connecticut tax-free money market funds average,
according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. There's one important wildcard: what happens in Asia. If we
continue to see the same level of turmoil there, I believe the Fed may
be obligated to stay on the sidelines, keeping interest rates
unchanged. There's a lot of risk that a rate increase in the U.S.
could cause increased volatility in global markets. Without a rate
increase, the U.S. economy still might slow as a result of fewer U.S.
exports. In this case, the Asian situation would do the Fed's job for
it. The strength of the U.S. economy, in light of the Asian situation,
has left the Fed at an impasse. And, although I believe the next Fed
move will be to raise rates, I don't believe it will be any time soon.
The only factor that could change the Fed's stance in the next few
months would be real signs of inflation - wage pressures as reflected
in the employment cost index or higher-than-expected increases in the
consumer price index or the producer price index. At that point, the
Fed may risk causing more problems in Asia to keep the U.S. economy on
good footing.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.

FUND FACTS
GOAL: high current tax-free
income while maintaining
share price stability by
investing mainly in
high-quality, short-term
Connecticut municipal money
market securities
FUND NUMBER: 418
TRADING SYMBOL: FCMXX
START DATE: August 29, 1989
SIZE: as of May 31, 1998,
more than $423 million
MANAGER: Scott Orr, since
July 1997; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1989
(checkmark)
FIDELITY CONNECTICUT MUNICIPAL MONEY MARKET FUND

INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/98 11/30/97 5/31/97

0 - 30 67 64 60

31 - 90 15 11 27

91 - 180 10 9 2

181 - 397 8 16 11

WEIGHTED AVERAGE MATURITY
5/31/98 11/30/97 5/31/97

FIDELITY CONNECTICUT MUNICIPAL 44 DAYS 59 DAYS 48 DAYS
MONEY MARKET FUND

CONNECTICUT TAX-FREE 43 DAYS 58 DAYS 46 DAYS
MONEY MARKET FUNDS AVERAGE*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF MAY 31, 1998 AS OF NOVEMBER 30, 1997
ROW: 1, COL: 1, VALUE: 6.0
ROW: 1, COL: 2, VALUE: 13.0
ROW: 1, COL: 3, VALUE: 7.0
ROW: 1, COL: 4, VALUE: 10.0
ROW: 1, COL: 5, VALUE: 64.0
VARIABLE RATE DEMAND
NOTES (VRDNS) 61%
COMMERCIAL PAPER
(INCLUDING CP MODE) 12%
TENDER BONDS 8%
MUNICIPAL NOTES 14%
OTHER 5%
VARIABLE RATE DEMAND
NOTES (VRDNS) 64%
COMMERCIAL PAPER
(INCLUDING CP MODE) 10%
TENDER BONDS 7%
MUNICIPAL NOTES 13%
OTHER 6%
ROW: 1, COL: 1, VALUE: 5.0
ROW: 1, COL: 2, VALUE: 14.0
ROW: 1, COL: 3, VALUE: 8.0
ROW: 1, COL: 4, VALUE: 12.0
ROW: 1, COL: 5, VALUE: 61.0
FIDELITY CONNECTICUT MUNICIPAL MONEY MARKET FUND

INVESTMENTS MAY 31, 1998 (UNAUDITED)

SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES

MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 86.1%
Avon Gen. Oblig. BAN 3.75% 7/15/98 $ 4,815,000 $ 4,816,428
Cheshire Gen. Oblig. BAN 4.25% 8/7/98 7,100,000 7,106,521
Clipper Tax Exempt Trust Participating VRDN, Series 94-1,
3.87% (Liquidity Facility State Street Bank & Trust Co.) (c)
7,978,587 7,978,588
Connecticut Area Coop. Ed. Svcs. Reg. (Spl. Ed. Facs.)
BAN 4.50% 2/16/99 4,125,000 4,139,102
Connecticut Dev. Auth. Arpt. Facs. Rev.
(Bradley Arpt. Hotel Proj.):
Series 1997 A, 3.70%, LOC Kredietbank N.V., VRDN 4,100,000
4,100,000
Series 1997 C, 3.70%, LOC Fleet Nat'l. Bank, VRDN 930,000 930,000
Connecticut Dev. Auth. Health. Care Rev.
(Corp. for Independent Living Proj.) Series 1990, 3.70%,
LOC Chase Manhattan Bank, VRDN 18,160,000 18,160,000
Connecticut Dev. Auth. Ind. Dev. Rev., VRDN:
(Cap. Dist. Energy Ctr. Proj.):
Series 1986, 3.60%, LOC Bank of Nova Scotia (b) 6,500,000
6,500,000
Series 1988, 3.60%, LOC Bank of Nova Scotia (b) 100,000 100,000
(Lindenmaier Precision Co./Ohaus Proj) Series 1988,
3.90%, LOC Morgan Guaranty Trust Co. (b) 8,000,000 8,000,000
(Rojo Enterprises LLC) 4.10%, LOC Fleet Bank NA 1,850,000 1,850,000
(W.E. Bassett Co. Proj.) Series 1986,
4.10%, LOC Bank of Boston (b) 900,000 900,000
Connecticut Dev. Auth. Poll. Cont. Rev., VRDN:
(Connecticut Lt. & Pwr. Co. Proj.):
Series 1993 A, 3.80%, LOC Deutsche Bank 10,700,000 10,700,000
Series 1993 B, 3.85%,
LOC Union Bank of Switzerland (b) 11,800,000 11,800,000
Series 1996 A, 3.85%
(AMBAC Insured) LOC Union Bank of Switzerland (b) 9,400,000
9,400,000
(United Illuminating Co.) Series 1996, 3.80%,
LOC Union Bank of Switzerland (b) 2,800,000 2,800,000
Connecticut Dev. Auth. Solid Waste Disp. Facs. Rev.:
(Exeter Energy Proj.) VRDN:
Series 1989 A, 4.60%, LOC Sanwa Bank (b) 5,800,000 5,800,000
Series 1989 B, 4.60%, LOC Sanwa Bank (b) 5,700,000 5,700,000
Series 1989 C, 4.60%, LOC Sanwa Bank (b) 1,400,000 1,400,000
(Rand-Whitney Containerboard) 3.75%,
LOC Chase Manhattan Bank (b) 7,200,000 7,200,000
Connecticut Gen. Oblig.:
Bonds:
Series D, 6% 12/1/98 2,440,000 2,467,124
Series 1997C, 5% 8/1/98 8,815,000 8,832,286
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Gen. Oblig.: - continued
Participating VRDN (c):
Series E-6, 3.80% (Liquidity Facility
Morgan Guaranty Trust Co.) $ 5,200,000 $ 5,200,000
Series BTP-292, 3.80%
(Liquidity Facility Bankers Trust Co.) 7,920,000 7,920,000
Series PA-338, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) 3,000,000
3,000,000
Series PA-347, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) 3,500,000
3,500,000
Connecticut Health & Ed. Facs. Auth. Rev.:
(Bradley Health Care Inc.) Series B,
3.65%, LOC Fleet Nat'l. Bank, VRDN 5,000,000 5,000,000
(Pomfret School Issue) Series A, 3.70%,
LOC Credit Local de France, VRDN 900,000 900,000
(Yale Univ.) Series T-2, 3.80%, VRDN 1,600,000 1,600,000
Bonds (Yale Univ.):
Series S-1:
3.45% 7/17/98, CP mode 4,435,000 4,435,000
3.50% 9/8/98, CP mode 1,600,000 1,600,000
3.55% 9/11/98, CP mode 3,900,000 3,900,000
Series S-2:
3.45% 9/8/98, CP mode 3,000,000 3,000,000
3.55% 9/8/98, CP mode 4,000,000 4,000,000
3.50% 9/9/98, CP mode 9,765,000 9,765,000
Participating VRDN, Series BT-203, 3.85%
(Liquidity Facility Bankers Trust) (c) 7,200,000 7,200,000
Connecticut Hsg. Fin. Auth. (Hsg. Mtg. Fin. Prog.):
Bonds Series 1989D:
3.60% 7/17/98, CP mode (b) 500,000 500,000
3.75% 9/9/98, CP mode (b) 1,500,000 1,500,000
3.65% 9/10/98, CP mode (b) 6,700,000 6,700,000
Series 1995G, 3.70% (AMBAC Insured)
(BPA Morgan Guarantee Trust Co.) VRDN 11,800,000 11,800,000
Connecticut Hsg. Fin. Auth. Participating VRDN (c):
Series FR/RI-A4, 3.90% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) 3,200,000 3,200,000
Series PT-81, 3.94%
(Liquidity Facility Rabobank Nederland, N.V.) (b) 2,615,000
2,615,000
Series PT-148, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) 1,500,000 1,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - CONTINUED
Connecticut Hsg. Fin. Auth. Participating VRDN (c): - continued
Series PT-1003 3.94% (Liquidity Facility
Merrill Lynch & Co., Inc.) (b) $ 5,140,000 $ 5,140,000
Series 1997 L, 4.05%
(Liquidity Facility CoreStates Bank) (b) 3,700,000 3,700,000
Connecticut Muni. Elec. Energy Coop. Rev. Bonds
(Pwr. Supply Sys.) Series 1995 A:
3.55% 8/12/98, LOC Fleet Nat'l. Bank, CP mode 1,800,000 1,800,000
3.65% 8/12/98, LOC Fleet Nat'l. Bank, CP mode 2,600,000 2,600,000
3.55% 9/8/98, LOC Fleet Nat'l. Bank, CP mode 2,400,000 2,400,000
Connecticut Reg. School Dist. #14 BAN:
4% 6/4/98 3,200,000 3,200,102
4% 6/1/99 (f) 4,900,000 4,915,435
Connecticut Spl. Assessment Second Injury Bonds
3.50% 8/27/98, LOC Credit Communale deBelgique, CP 2,000,000
2,000,000
Connecticut Spl. Assessment Unemployment Rev. Bonds
Series 1993 C, 3.90%, tender 7/1/98 (FGIC Insured)
(Liquidity Facility FGIC Security Purchase Inc.) 30,400,000
30,400,000
Connecticut Spl. Tax Oblig.:
(Transport Infrastructure Purpose) Series 1,
3.85%, LOC Commerzbank, VRDN 27,775,000 27,775,000
Participating VRDN, Series BTP-263, 3.75%
(Liquidity Facility Bankers Trust Co.) (c) 11,550,000 11,550,000
Coventry Gen. Oblig. BAN 4% 12/15/98 5,200,000 5,208,376
East Hartford Gen. Oblig. BAN 3.75% 1/21/99 9,800,000 9,815,734
East Haven Gen. Oblig. BAN:
4% 9/1/98 2,300,000 2,300,830
4.25% 9/1/98 1,700,000 1,701,650
Hartford Redev. Auth. (Underwood Towers Proj.) 3.75%
(FSA Insured) (BPA Barclays Bank) VRDN 11,945,000 11,945,000
Madison Gen. Oblig. BAN 4.22% 11/18/98 2,200,000 2,203,171
Monroe Gen. Oblig. BAN 3.75% 11/4/98 3,600,000 3,604,482
New Haven Ind. Dev. Board (Starter Sportswear)
Series 1986, 3.80%, LOC Fleet Nat'l. Bank, VRDN (b) 2,200,000
2,200,000
South Windsor Gen. Oblig. BAN 3.75% 3/23/99 7,000,000 7,016,906
Stamford Hsg. Auth. Multimodal Rev. (Morgan Street Proj.)
Series 1994, 3.90%, LOC Deutsche Bank, VRDN (b) 5,000,000 5,000,000
365,991,735
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 10.9%
Puerto Rico Commonwealth Pub. Impt. Participating VRDN,
Series PA-97, 3.92% (Liquidity Facility
Merrill Lynch & Co.) (c) $ 4,100,000 $ 4,100,000
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Participating VRDN (c):
Series PA-311, 3.92% (Liquidity Facility
Merrill Lynch & Co., Inc.) 3,195,000 3,195,000
Series SGA-43, 3.85%
(Liquidity Facility Societe Generale France) 1,700,000 1,700,000
Puerto Rico Gov't. Dev. Bank Rev., 3.80% (MBIA Insured)
(BPA Credit Suisse First Boston) VRDN 5,600,000 5,600,000
Puerto Rico Hwy. & Trans. Auth. Participating VRDN (c):
Series PA-114, 3.92%,
(Liquidity Facility Merrill Lynch & Co., Inc.) 3,300,000 3,300,000
Series PA-125, 3.92%
(Liquidity Facility Merrill Lynch & Co., Inc.) 2,900,000 2,900,000
Puerto Rico Hwy. & Trans. Auth. Rev. Series A, 3.75%
(AMBAC Insured) (Liquidity Facility Bank of
Nova Scotia) VRDN 1,900,000 1,900,000
Puerto Rico Infrastructure Fin. Auth. Participating VRDN,
Series 1997 A, 3.75%
(Liquidity Facility CoreStates Bank) (c) 10,385,000 10,385,000
Puerto Rico Pwr. Auth. Pwr. Rev. Participating VRDN (c):
Series PA-205, 3.92%,
(Liquidity Facility Merrill Lynch & Co., Inc.) 8,295,000 8,295,000
Series SGA-44, 3.85%
(Liquidity Facility Societe Generale France) 5,100,000 5,100,000
46,475,000
SHARES
OTHER - 3.0%
Municipal Central Cash Fund (d)(e) 12,802,934 12,802,934
TOTAL INVESTMENTS - 100% $ 425,269,669
Total Cost for Income Tax Purposes $ 425,269,669
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Information in this report regarding holdings by state and
security types do not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of it's most recent fiscal period end is available upon request.
(e) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.89%. The yiled refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(f) Security purchased on a delayed delivery or when-issued basis (see
Note #2 of Notes to Financial Statements).
INCOME TAX INFORMATION
At November 30, 1997, the fund had a capital loss carryforward of
approximately $18,347 of which $8,092, $2,885 and $7,370 will expire
on November 30, 2002, 2003 and 2005, respectively.
FIDELITY CONNECTICUT MUNICIPAL MONEY MARKET FUND

FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)

ASSETS

INVESTMENT IN SECURITIES, AT VALUE - $ 425,269,669
SEE ACCOMPANYING SCHEDULE

RECEIVABLE FOR FUND SHARES SOLD 3,764,619

INTEREST RECEIVABLE 3,370,630

TOTAL ASSETS 432,404,918

LIABILITIES

PAYABLE TO CUSTODIAN BANK $ 24

PAYABLE FOR INVESTMENTS PURCHASED ON A 4,915,435
DELAYED DELIVERY BASIS

PAYABLE FOR FUND SHARES REDEEMED 3,925,059

DISTRIBUTIONS PAYABLE 57,276

ACCRUED MANAGEMENT FEE 133,309

OTHER PAYABLES AND ACCRUED EXPENSES 83,932

TOTAL LIABILITIES 9,115,035

NET ASSETS $ 423,289,883

NET ASSETS CONSIST OF:

PAID IN CAPITAL $ 423,335,169

ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (45,286)

NET ASSETS, FOR 423,335,081 SHARES OUTSTANDING $ 423,289,883

NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($423,289,883 (DIVIDED BY) 423,335,081 SHARES)

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)

INTEREST INCOME $ 7,602,634

EXPENSES

MANAGEMENT FEE $ 825,569

TRANSFER AGENT FEES 288,569

ACCOUNTING FEES AND EXPENSES 41,967

CUSTODIAN FEES AND EXPENSES 9,582

NON-INTERESTED TRUSTEES' COMPENSATION 5,938

REGISTRATION FEES 23,507

AUDIT 14,758

LEGAL 8,774

REPORTS TO SHAREHOLDERS 8,832

MISCELLANEOUS 48

TOTAL EXPENSES BEFORE REDUCTIONS 1,227,544

EXPENSE REDUCTIONS (17,488) 1,210,056

NET INTEREST INCOME 6,392,578

NET GAIN (LOSS) (26,939)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,365,639

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS $ 6,392,578 $ 11,154,435
NET INTEREST INCOME

NET REALIZED GAIN (LOSS) (26,939) (7,370)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 6,365,639 11,147,065
FROM OPERATIONS

DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (6,392,578) (11,154,435)

SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 667,591,668 993,544,813
PROCEEDS FROM SALES OF SHARES

REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 6,087,398 10,652,203

COST OF SHARES REDEEMED (637,538,867) (956,500,263)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 36,140,199 47,696,753
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 36,113,260 47,689,383

NET ASSETS

BEGINNING OF PERIOD 387,176,623 339,487,240

END OF PERIOD $ 423,289,883 $ 387,176,623

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31, 1998

(UNAUDITED) 1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD

INCOME FROM INVESTMENT .015 .030 .029 .032 .022 .019
OPERATIONS
NET INTEREST INCOME

LESS DISTRIBUTIONS

FROM NET INTEREST (.015) (.030) (.029) (.032) (.022) (.019)
INCOME

NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD

TOTAL RETURN B, C 1.50% 3.05% 2.98% 3.29% 2.19% 1.87%

RATIOS AND SUPPLEMENTAL DATA

NET ASSETS, END OF PERIOD $ 423,290 $ 387,177 $ 339,487 $ 321,870 $ 300,885 $ 288,566
(000 OMITTED)

RATIO OF EXPENSES TO .57% A .58% .59% .61% .60% .61%
AVERAGE NET ASSETS

RATIO OF EXPENSES TO .57% A .57% D .58% D .61% .60% .61%
AVERAGE NET ASSETS AFTER
EXPENSE REDUCTIONS

RATIO OF NET INTEREST 2.99% A 3.00% 2.93% 3.24% 2.16% 1.87%
INCOME TO AVERAGE
NET ASSETS

</TABLE>

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Connecticut Municipal Income Fund (the income fund) is a fund
of Fidelity Court Street Trust. Spartan Connecticut Municipal Money
Market Fund and Fidelity Connecticut Municipal Money Market Fund (the
money market funds) are funds of Fidelity Court Street Trust II. Each
trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company.
Fidelity Court Street Trust and Fidelity Court Street Trust II (the
trusts) are organized as a Massachusetts business trust and a Delaware
business trust, respectively. Each fund is authorized to issue an
unlimited number of shares. The financial statements have been
prepared in conformity with generally accepted accounting principles
which permit management to make certain estimates and assumptions at
the date of the financial statements. The following summarizes the
significant accounting policies of the income fund and the money
market funds:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities,
including restricted securities, for which quotations are not readily
available are valued at their fair value as determined in good faith
under consistently applied procedures under the general supervision of
the Board of Trustees. Short-term securities with remaining maturities
of sixty days or less for which quotations are not readily available
are valued at amortized cost or original cost plus accrued interest,
both of which approximate current value.
MONEY MARKET FUNDS. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. For the money market funds, accretion of discount represents
unrealized gain until realized at the time of a security disposition
or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for
futures and options transactions, market discount, capital loss
carryforwards and losses deferred due to wash sales and futures and
options. The income fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes. Permanent book and
tax basis differences relating to shareholder distributions will
result in reclassifications to paid in capital and may affect the
per-share allocation between net interest income and realized and
unrealized gain (loss). Accumulated undistributed net realized gain
(loss) on investments may include temporary book and tax basis
differences that will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the
following year.
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in the income fund
less than 180 days are subject to a short-term trading fee equal to
.50% of the proceeds of the redeemed shares. The fee, which is
retained by the income fund, is accounted for as an addition to paid
in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission, the funds may invest in the
Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc. (formerly FMR Texas, Inc.) an
affiliate of Fidelity Management & Research Company (FMR). The Cash
Fund is an open-end money market fund available only to investment
companies and other accounts managed by FMR and its affiliates. The
Cash Fund seeks preservation of capital, liquidity, and current income
by investing in high-quality, short-term municipal securities of
various states and municipalities. Income distributions from the Cash
Fund are declared daily and paid monthly from net interest income.
Income distributions earned by the funds are recorded as interest
income in the accompanying financial statements.
DELAYED DELIVERY TRANSACTIONS. Each fund may purchase or sell
securities on a delayed delivery basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of
the underlying securities and the date when the securities will be
delivered and paid for are fixed at the time the transaction is
negotiated. The market values of the securities purchased or sold on a
delayed delivery basis are identified as such in each applicable
fund's schedule of investments.
The funds may receive compensation for interest forgone in the
purchase of a delayed delivery security. With respect to purchase
commitments, each applicable fund identifies securities as segregated
in its custodial records with a value at
2. OPERATING POLICIES -
CONTINUED
least equal to the amount of the commitment. Losses may arise due to
changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
FUTURES CONTRACTS. The income fund may use futures contracts to manage
its exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Futures contracts involve, to varying degrees, risk of loss in excess
of the futures variation margin reflected in the Statement of Assets
and Liabilities. The underlying face amount at value of any open
futures contracts at period end is shown in the schedule of
investments under the caption "Futures Contracts." This amount
reflects each contract's exposure to the underlying instrument at
period end. Losses may arise from changes in the value of the
underlying instruments or if the counterparties do not perform under
the contracts' terms. Gains (losses) are realized upon the expiration
or closing of the futures contracts. Futures contracts are valued at
the settlement price established each day by the board of trade or
exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $27,682,858 and $11,865,536, respectively.
The market value of futures contracts opened and closed during the
period amounted to $29,723,590 and $40,040,977, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the investment adviser for Fidelity Connecticut
Municipal Money Market Fund, FMR receives a monthly fee that is
calculated on the basis of a group fee rate plus a fixed individual
fund fee rate applied to the average net assets of the fund. The group
fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR.
The rates ranged from .1100% to .3700% for the period. The annual
individual fund fee rate is .25%. In the event that these rates were
lower than the contractual rates in effect during the period, FMR
voluntarily implemented the above rates, as they resulted in the same
or lower management fee. For the period, the management fee was
equivalent to an annualized rate of .39% of average net
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
assets for Fidelity Connecticut Municipal Money Market Fund.
As the investment advisor for Spartan Connecticut Municipal Income
Fund and Spartan Connecticut Municipal Money Market Fund, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annualized rate of .55% and .50% of average net assets for Spartan
Connecticut Municipal Income Fund and Spartan Connecticut Municipal
Money Market Fund, respectively.
FMR also bears the cost of providing shareholder services to Spartan
Connecticut Municipal Income Fund and Spartan Connecticut Municipal
Money Market Fund. To offset the cost of providing these services, FMR
or its affiliates collect certain transaction fees from Spartan
Connecticut Municipal Money Market Fund's shareholders which amounted
to $1,050 for the period.
SUB-ADVISER FEE. As the money market funds' investment sub-adviser,
Fidelity Investments Money Management, Inc. (formerly FMR Texas,
Inc.), a wholly owned subsidiary of FMR, receives a fee from FMR of
50% of the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for Fidelity
Connecticut Municipal Money Market Fund. UMB has entered into a
sub-contract with Fidelity Service Company, Inc. (FSC), an affiliate
of FMR, under which FSC performs the activities associated with the
fund's transfer and shareholder servicing agent and accounting
functions. The fund pays account fees and asset-based fees that vary
according to account size and type of account. FSC pays for
typesetting, printing and mailing of all shareholder reports, except
proxy statements. The accounting fee is based on the level of average
net assets for the month plus out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an
annualized rate of .14% of average net assets for Fidelity Connecticut
Municipal Money Market Fund.
5. EXPENSE REDUCTIONS.
Fidelity Connecticut Municipal Money Market Fund has entered into
arrangements with its custodian and transfer agent whereby credits
realized as a result of uninvested cash balances were used to reduce a
portion of the fund's expenses. During the period, Fidelity
Connecticut Municipal Money Market Fund's custodian and transfer agent
fees were reduced by $374 and $17,114, respectively, under these
arrangements.
FMR has entered into arrangements on behalf of Spartan Connecticut
Municipal Income Fund and Spartan Connecticut Municipal Money Market
Fund with each fund's custodian and transfer agent whereby credits
realized as a result of uninvested cash balances were used to reduce a
portion of each fund's expenses. During the period, Spartan
Connecticut Municipal Income Fund and Spartan Connecticut Municipal
Money Market Fund's expenses were reduced by $16,498 and $7,534,
respectively, under these arrangements.
PROXY VOTING RESULTS

A special meeting of Fidelity Court Street Trust II's shareholders was
held on December 17, 1997. The results of votes taken among
shareholders on proposals before them are listed below.
PROPOSAL 1
To elect as Trustees the following twelve nominees.
# OF % OF
SHARES VOTED SHARES VOTED
RALPH F. COX
AFFIRMATIVE 742,366,479.909 96.787

WITHHELD 24,642,287.090 3.213

TOTAL 767,008,766.999 100.000

PHYLLIS BURKE DAVIS
AFFIRMATIVE 741,858,140.779 96.721

WITHHELD 25,150,626.220 3.279

TOTAL 767,008,766.999 100.000

ROBERT M. GATES
AFFIRMATIVE 740,326,691.979 96.521

WITHHELD 26,682,075.020 3.479

TOTAL 767,008,766.999 100.000

EDWARD C. JOHNSON 3D
AFFIRMATIVE 742,526,984.799 96.808

WITHHELD 24,481,782.200 3.192

TOTAL 767,008,766.999 100.000

E. BRADLEY JONES
AFFIRMATIVE 738,558,877.569 96.291

WITHHELD 28,449,889.430 3.709

TOTAL 767,008,766.999 100.000

DONALD J. KIRK
AFFIRMATIVE 742,698,625.339 96.831

WITHHELD 24,310,141.660 3.169

TOTAL 767,008,766.999 100.000

# OF % OF
SHARES VOTED SHARES VOTED
PETER S. LYNCH
AFFIRMATIVE 742,804,693.399 96.844

WITHHELD 24,204,073.600 3.156

TOTAL 767,008,766.999 100.000

WILLIAM O. MCCOY
AFFIRMATIVE 742,777,102.439 96.841

WITHHELD 24,231,664.560 3.159

TOTAL 767,008,766.999 100.000

GERALD C. MCDONOUGH
AFFIRMATIVE 740,489,812.019 96.543

WITHHELD 26,518,954.980 3.457

TOTAL 767,008,766.999 100.000

MARVIN L. MANN
AFFIRMATIVE 742,492,623.319 96.804

WITHHELD 24,516,143.680 3.196

TOTAL 767,008,766.999 100.000

ROBERT C. POZEN
AFFIRMATIVE 742,603,015.859 96.818

WITHHELD 24,405,751.140 3.182

TOTAL 767,008,766.999 100.000

THOMAS R. WILLIAMS
AFFIRMATIVE 740,510,918.469 96.545

WITHHELD 26,497,848.530 3.455

TOTAL 767,008,766.999 100.000

PROPOSAL 2
To ratify the selection of Coopers & Lybrand L.L.P. as independent
accountants of the funds.
Spartan Connecticut Municipal Money Market Fund votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 89,367,312.050 97.676

AGAINST 1,224,929.980 1.339

ABSTAIN 901,600.600 .985

TOTAL 91,493,842.630 100.000

Fidelity Connecticut Municipal Money Market Fund votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 194,056,121.260 95.491

AGAINST 5,197,729.550 2.558

ABSTAIN 3,965,776.830 1.951

TOTAL 203,219,627.640 100.000

PROPOSAL 3
To amend the Trust Instrument to provide dollar-based voting rights
for shareholders of Fidelity Court Street Trust II.
Trust Votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 689,235,885.364 89.860

AGAINST 38,356,553.755 5.001

ABSTAIN 39,416,327.880 5.139

TOTAL 767,008,766.999 100.000

Spartan Connecticut Municipal Money Market Fund Votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 83,536,170.310 91.303

AGAINST 4,742,611.710 5.183

ABSTAIN 3,215,060.610 3.514

TOTAL 91,493,842.630 100.000

Fidelity Connecticut Municipal Money Market Fund Votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 181,932,922.170 89.525

AGAINST 12,430,210.220 6.117

ABSTAIN 8,856,495.250 4.358

TOTAL 203,219,627.640 100.000

PROPOSAL 4
To approve an amended management contract for Fidelity Connecticut
Municipal Money Market Fund.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 181,282,302.520 89.205

AGAINST 10,540,854.300 5.187

ABSTAIN 11,396,470.820 5.608

TOTAL 203,219,627.640 100.000

PROPOSAL 5
To amend Fidelity Connecticut Municipal Money Market Fund's
fundamental investment limitation concerning the issuance of senior
securities.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 177,808,880.840 87.496

AGAINST 13,395,080.430 6.591

ABSTAIN 12,015,666.370 5.913

TOTAL 203,219,627.640 100.000

PROPOSAL 6
To amend Fidelity Connecticut Municipal Money Market Fund's and
Spartan Connecticut Municipal Money Market Fund's fundamental
investment limitation concerning the concentration of investments in a
single industry.
Spartan Connecticut Municipal Money Market Fund Votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 80,073,500.950 87.518

AGAINST 6,486,726.060 7.090

ABSTAIN 4,933,615.620 5.392

TOTAL 91,493,842.630 100.000

Fidelity Connecticut Municipal Money Market Fund Votes
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 178,867,562.080 88.017

AGAINST 13,388,671.000 6.588

ABSTAIN 10,963,394.560 5.395

TOTAL 203,219,627.640 100.000

INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER,
MONEY MARKET FUNDS
Fidelity Investments
Money Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Dwight D. Churchill, Vice President -
INCOME FUND
Boyce I. Greer, Vice President -
MONEY MARKET FUNDS
George A. Fischer, Vice President -
INCOME FUND
Scott A. Orr, Vice President -
MONEY MARKET FUNDS
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress (registered trademark) 1-800-544-5555
AUTOMATED LINES FOR QUICKEST SERVICE