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<IMS-DOCUMENT>0000806176-95-000001.txt : 19950109
<IMS-HEADER>0000806176-95-000001.hdr.sgml : 19950109
ACCESSION NUMBER:		0000806176-95-000001
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	19941031
FILED AS OF DATE:		19950106
SROS:			NONE

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PREMIER STATE MUNICIPAL BOND FUND
		CENTRAL INDEX KEY:			0000806176
		STANDARD INDUSTRIAL CLASSIFICATION:	UNKNOWN SIC - 0000 [0000]
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04906
		FILM NUMBER:		95500491

	BUSINESS ADDRESS:	
		STREET 1:		144 GENN CURTISS BLVD
		CITY:			NUIONDALE
		STATE:			NY
		ZIP:			11556
		BUSINESS PHONE:		2129226805

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PREMIER SERIES TAX EXEMPT BOND FUND
		DATE OF NAME CHANGE:	19870224
</IMS-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<DESCRIPTION>SEMI-ANNUAL REPORT
<TEXT>

LETTER TO SHAREHOLDERS
Dear Shareholder:
    As your Series' semi-annual reporting period ended on October 31, 1994,
the net asset value per share for Class A shares was $11.18, a decrease of
$.46 per share from $11.64 on April 30, 1994. Tax exempt income dividends of
approximately $.35 per share were paid during the 6-month period,
representing an annualized distribution rate per share of 5.98%, based on the
October 31 closing maximum offering price. For Class B shares during the same
period, the closing net asset value per share was $11.18, a decrease of $.45
from $11.63 on April 30, 1994. Tax exempt income dividends of approximately
$.32 per share were paid during the period, representing an annualized
distribution rate per share of 5.67%, based on the closing net asset value.
We are pleased to inform you that all dividends paid from net investment
income were fully exempt from Federal and Massachusetts State income taxes.*
FIXED-INCOME MARKETS
    These past 12 months have been disappointing for all fixed-income
markets. As an example, long-term U.S. Treasury Bond yields are up over 200
basis points. At the beginning of the calendar year, there was speculation in
the municipal bond market that reinvestment would be so great, and bond
issuance so sparse, that the prices of municipal bonds would stay firm in
spite of any contrary trend in the markets. This might have proven to be true
had the trend been for fixed-income products to drift sideways or to trade to
the lower end of their trading ranges. However, the world of fixed income
experienced a more dramatic correction to which even the positive outlook for
municipals could not remain impervious. The interest rate change started with
the Federal Reserve Board's 25 basis-point increase in the Federal Funds rate
on February 4, and has continued through four additional rate hikes, some as
large as 50 basis points. Most analysts think more rate increases are
imminent.
A DEFENSIVE STRATEGY
    Since the initial market corrections in the spring, we have taken some
defensive portfolio measures. Keeping more cash on hand, selling bonds as
they became market discounts and adding some shorter maturity securities have
helped limit the Series' volatility. During the market's recent declines,
these moves kept the Series' net asset value in a relatively more stable
position.
THE MASSACHUSETTS TAX EXEMPT MARKET
    The supply of paper in the State of Massachusetts is lower this year,
keeping pace with a drop of almost 50% in general market new issuance. While
this creates few portfolio alternatives, it can help support the secondary
market, which may be beneficial when the Series' sells bonds. Such strong
liquidity has been an important price support mechanism. However, we believe
the greatest influence on prices this year has been the overall upward
direction of long-term interest rates.
OUR OUTLOOK
    Looking forward, we currently expect the trend in short-term rates to be
higher. We think the Federal Reserve is likely to raise rates in this sector
until it receives convincing evidence of slower economic growth. Intermediate
and long-term interest rates, because they tend to anticipate inflation, have
some added complexity. Currently, inflation has only materialized in the
early phases of production. Although this threat seems distant, recent
higher-than-expected figures for Gross Domestic Product and from the National
Association of Purchasing Managers survey confirm our market view that
inflation may gain momentum at the consumer level. The result could be rising
long-term rates, which encourages us to remain cautious.
    We have included a current Statement of Investments and recent financial
statements for your review. We look forward to
serving your investment needs in the future.
                              Very truly yours,
                              (signature logo)
                              Richard J. Moynihan
                              Director, Municipal Portfolio Management
                              The Dreyfus Corporation
November 14, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
STATEMENT OF INVESTMENTS                         OCTOBER 31, 1994 (UNAUDITED)
                                                                                           PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS_100.0%                                                      AMOUNT            VALUE
                                                                                           ------------   ------------
<S>                                                                                        <C>            <C>
MASSACHUSETTS_90.0%
Boston, Revenue, Refunding (Boston City Hospital) 5.75%, 2/15/2023 (Insured; FHA)          $  1,500,000   $  1,265,370
Boston Industrial Development Financing Authority, Sewer Facility Revenue
    (Harbor Electric Energy Co. Project) 7.375%, 5/15/2015..................                  2,500,000      2,562,600
Boston Water and Sewer Commission, Revenue:
    7.875%, 11/1/1996.......................................................                   295,000         318,293
    7.875%, 11/1/2013.......................................................                   605,000         649,994
    7.10%, 11/1/2019 (Insured; MBIA, Prerefunded 11/1/1999) (a).............                  1,000,000      1,089,410
Leominster 7.50%, 4/1/2009 (Insured; MBIA)..................................                  1,275,000      1,369,108
Lynn Water and Sewer Commission, General Revenue 7.25%, 12/1/2010 (Insured; MBIA)             1,000,000      1,103,750
Massachusetts Bay Transportation Authority:
    7%, 3/1/2021............................................................                  1,000,000      1,018,050
    7.004%, 3/1/2021 (b,c)..................................................                  2,300,000      1,532,375
Massachusetts College Building Authority, Project Revenue
    7.80%, 5/1/2016 (Insured; MBIA).........................................                  1,000,000      1,098,600
Massachusetts Commonwealth:
    7.25%, 3/1/2000 (Insured; FGIC).........................................                   650,000         712,257
    7.25%, 3/1/2009 (Insured; FGIC, Prerefunded 3/1/2000) (a)...............                   350,000         383,184
    7%, 8/1/2012............................................................                  1,850,000      1,897,082
Massachusetts Education Loan Authority, Education Loan Revenue
    7.75%, 1/1/2008 (Insured; MBIA).........................................                  1,375,000      1,414,229
Massachusetts Health and Educational Facilities Authority, Revenue:
    (Berkshire Health Systems):
      7.50%, 10/1/2008 (Insured; MBIA)......................................                  1,000,000      1,075,810
      6.75%, 10/1/2019 (Insured; MBIA)......................................                  1,750,000      1,750,455
    (Brigham and Womens Hospital) 6.75%, 7/1/2024...........................                  1,000,000        966,370
    (Capital Asset Program) 7.30%, 10/1/2018 (Insured; MBIA)................                  3,750,000      4,041,225
    (Harvard University) 6.50%, 12/1/2007...................................                   750,000         768,885
    (Medical Center of Central Massachusetts) 7.10%, 7/1/2021...............                  1,000,000      1,011,450
    (New England Deaconess Hospital) 6.875%, 4/1/2022.......................                  6,000,000      5,692,260
    (Refunding - Milton Hospital) 7%, 7/1/2016 (Insured; MBIA)..............                  2,050,000      2,094,751
    (Salem Hospital) 7.25%, 7/1/2009 (Insured; MBIA)........................                   370,000         383,313
    (South Shore Hospital) 7.50%, 7/1/2020 (Insured; MBIA, Prerefunded 7/1/2000) (a)          2,000,000      2,221,680
    (Tufts Univeristy) 6.99%, 8/15/2018 (Insured; FGIC) (b).................                  2,000,000      1,611,840
    (University Hospital) 7.25%, 7/1/2019 (Insured; MBIA)...................                  2,750,000      2,859,945
Massachusetts Housing Finance Agency, Housing Revenue:
    Multi-Family Residential 7.80%, 8/1/2022 (Insured; FHA).................                  1,500,000      1,479,615

PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
STATEMENT OF INVESTMENTS (CONTINUED)                                      OCTOBER 31, 1994 (UNAUDITED)
                                                                                          PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED)                                                  AMOUNT          VALUE
                                                                                           ------------   ------------
MASSACHUSETTS (CONTINUED)
Massachusetts Housing Finance Agency, Housing Revenue (continued):
    Residential:
      6.25%, 11/15/2012 (Collateralized; FNMA)..............................               $  1,600,000   $  1,518,800
      8.50%, 8/1/2020.......................................................                     15,000         15,758
      8.40%, 8/1/2021.......................................................                   260,000         266,825
    Single Family:
      7.80%, 12/1/2005......................................................                    955,000        969,592
      7.90%, 6/1/2014.......................................................                    980,000      1,007,950
      8.10%, 12/1/2021......................................................                  2,400,000      2,513,664
      7.95%, 6/1/2023.......................................................                  2,000,000      2,045,340
Massachusetts Industrial Finance Agency, Revenue:
    (Brandeis University) 6.80%, 10/1/2019 (Insured; MBIA)..................                   500,000         502,690
    (Brooks School) 5.95%, 7/1/2023.........................................                  1,000,000        886,420
    (Leonard Morse Hospital) 8%, 10/15/2014 (Prerefunded 10/15/1999) (a)....                 1,000,000       1,130,780
    (Provider Lease Program) 8.75%, 7/15/2009...............................                   695,000         729,277
    (Refunding - Harvard Community Health) 8.125%, 10/1/2017................                   750,000         803,332
Massachusetts Municipal Wheelhouse Electric Co., Power Supply Systems
Revenue:
    8.75%, 7/1/2018.........................................................                  3,420,000      3,801,354
    6.125%, 7/1/2019........................................................                  1,200,000      1,063,272
Massachusetts Port Authority, Special Project Revenue
    (Harborside Hyatt) 10%, 3/1/2026........................................                  3,000,000      3,255,000
Massachusetts Water Resources Authority 7.625%, 4/1/2014 (Prerefunded 4/1/2000) (a)             750,000        834,540
New England Education Loan Marketing Corp., Refunding
    (Student Loan) 5.70%, 7/1/2005..........................................                  1,000,000        945,640
Somerville Housing Development Corp., Multi-Family Revenue, Refunding
    7.50%, 1/1/2024 (Collateralized; FNMA)..................................                  1,000,000      1,021,480
University of Lowell Building Authority 7.60%, 11/1/2010 (Insured; FSA).....                   750,000         797,723
U. S. RELATED_10.0%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................                  1,500,000      1,421,205
Puerto Rico Commonwealth:
    6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)..............................                  1,000,000      1,085,980
    Refunding 6%, 7/1/2014..................................................                  2,000,000      1,831,680
Puerto Rico Commonwealth Highway and Transportation Authority, Highway
Revenue:
    6.644%, 7/1/2009 (b)....................................................                  1,000,000        777,500
    6.744%, 7/1/2010 (b)....................................................                  1,000,000        760,000
Puerto Rico Electric Power Authority, Power Revenue 8%, 7/1/2008............                    500,000        558,035
Virgin Islands Public Finance Authority, Revenue, Refunding 7.25%, 10/1/2018                  1,000,000        992,080
                                                                                                            ----------
TOTAL INVESTMENTS (cost $73,701,409)........................................                               $73,907,818
                                                                                                           ===========
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
SUMMARY OF ABBREVIATIONS
<S>           <C>                                                <S>     <C>
FGIC          Financial Guaranty Insurance Company               FSA     Financial Security Assurance
FHA           Federal Housing Administration                     MBIA    Municipal Bond Investors Assurance
FNMA          Federal National Mortgage Association
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (D)              OR          MOODY'S             OR         STANDARD & POOR'S          PERCENTAGE OF VALUE
- ---------                          --------                       -----------------          -----------------
<S>                                <C>                            <S>                               <C>
AAA                                Aaa                            AAA                               47.8%
AA                                 Aa                             AA                                10.6
A                                  A                              A                                 27.9
BBB                                Baa                            BBB                                5.4
Not Rated                          Not Rated                      Not Rated                          8.3
                                                                                                    ----
                                                                                                  100.0%
                                                                                                  ======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
    (a)  Bonds which are prerefunded are collateralized by U.S. Government
    securities which are held in escrow and are used to pay principal and
    interest on the municipal issue and to retire the bonds in full at the
    earliest refunding date.
    (b)  Inverse floater security - the interest rate is subject to change
    periodically.
    (c)  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 October 31,
    1994, this security amounted to $1,532,375 or 2.0% of net assets.
    (d)  Fitch currently provides creditworthiness information for a limited
    number of investments.
    (e)  At October 31, 1994, the Fund had $24,285,291 (31.8%) of net assets
    invested in securities whose payment of principal and interest is
    dependent upon revenues generated from health care projects.
    (f)  At October 31, 1994, 27.5% of the Fund's net assets are insured by
    MBIA.

See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
STATEMENT OF ASSETS AND LIABILITIES                                       OCTOBER 31, 1994 (UNAUDITED)
ASSETS:
    <S>                                                                                        <C>         <C>
    Investments in securities, at value
      (cost $73,701,409)_see statement.....................................                                $73,907,818
    Cash....................................................................                                   998,082
    Interest receivable.....................................................                                 1,449,519
    Receivable for shares of Beneficial Interest subscribed.................                                    18,044
    Prepaid expenses........................................................                                     5,374
                                                                                                           -----------
                                                                                                            76,378,837
LIABILITIES:
    Due to The Dreyfus Corporation..........................................                   $36,580
    Payable for shares of Beneficial Interest redeemed......................                    28,672
    Accrued expenses........................................................                    35,807         102,059
                                                                                             ----------       --------
NET ASSETS  ................................................................                               $76,276,778
                                                                                                           ===========
REPRESENTED BY:
    Paid-in capital.........................................................                               $75,713,410
    Accumulated undistributed net realized gain on investments..............                                   356,959
    Accumulated net unrealized appreciation on investments_Note 3...........                                   206,409
                                                                                                           -----------
NET ASSETS at value.........................................................                               $76,276,778
                                                                                                           ===========
Shares of Beneficial Interest outstanding:
    Class A Shares
      (unlimited number of $.001 par value shares authorized)...............                                 6,479,097
                                                                                                           ===========
    Class B Shares
      (unlimited number of $.001 par value shares authorized)...............                                   341,582
                                                                                                           ===========
NET ASSET VALUE per share:
    Class A Shares
      ($72,458,811 / 6,479,097 shares)......................................                                    $11.18
                                                                                                                ======
    Class B Shares
      ($3,817,967 / 341,582 shares).........................................                                    $11.18
                                                                                                                ======


See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
STATEMENT OF OPERATIONS                                  SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED)
INVESTMENT INCOME:
    <S>                                                                                  <C>              <C>
    INTEREST INCOME.........................................................                              $  2,793,069
    EXPENSES:
      Management fee_Note 2(a).............................................              $     220,474
      Shareholder servicing costs_Note 2(c).................................                   129,709
      Distribution fees (Class B shares)_Note 2(b)..........................                     9,945
      Prospectus and shareholders' reports..................................                     7,157
      Professional fees.....................................................                     4,555
      Custodian fees........................................................                     4,071
      Registration fees.....................................................                     1,430
      Trustees' fees and expenses_Note 2(d).................................                       299
      Miscellaneous.........................................................                     7,004
                                                                                         -------------
                                                                                               384,644
      Less_reduction in management fee due to
          undertakings_Note 2(a)............................................                     7,190
                                                                                         -------------
            TOTAL EXPENSES..................................................                                   377,454
                                                                                                            ----------
            INVESTMENT INCOME_NET..........................................                                 2,415,615
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
    Net realized gain on investments_Note 3................................              $     369,923
    Net unrealized (depreciation) on investments............................                (3,465,008)
                                                                                         -------------
            NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS...............                               (3,095,085)
                                                                                                            ----------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......................                            $    (679,470)
                                                                                                        ==============




See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
STATEMENT OF CHANGES IN NET ASSETS
                                                                                        YEAR ENDEDSIX MONTHS ENDED
                                                                                        APRIL 30,  OCTOBER 31, 1994
                                                                                           1994         (UNAUDITED)
                                                                                      -------------      -------------
OPERATIONS:
    <S>                                                                                <C>                <C>
    Investment income_net..................................................            $  4,904,107       $  2,415,615
    Net realized gain on investments........................................                 38,609            369,923
    Net unrealized (depreciation) on investments for the period.............             (3,301,993)        (3,465,008)
                                                                                      -------------      -------------
          NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...            1,640,723           (679,470)
                                                                                      -------------      -------------
DIVIDENDS TO SHAREHOLDERS:
    From investment income_net:
      Class A shares........................................................            (4,768,195)         (2,307,044)
      Class B shares........................................................              (135,912)          (108,571)
    From net realized gain on investments:
      Class A shares........................................................              (303,176)           --
      Class B shares........................................................                (11,985)          --
    In excess of net realized gain on investments:
      Class A shares........................................................                (12,471)          --
      Class B shares........................................................                   (493)          --
                                                                                      -------------      -------------
          TOTAL DIVIDENDS...................................................          (5,232,232)          (2,415,615)
                                                                                      -------------      -------------
BENEFICIAL INTEREST TRANSACTIONS:
    Net proceeds from shares sold:
      Class A shares........................................................              6,515,438          3,092,268
      Class B shares........................................................              2,835,004            562,591
    Dividends reinvested:
      Class A shares........................................................              2,622,716          1,217,040
      Class B shares........................................................                 68,991             58,447
    Cost of shares redeemed:
      Class A shares........................................................             (8,594,165)         (5,781,476)
      Class B shares........................................................                (56,768)      (343,617)
                                                                                      -------------      -------------
          INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS         3,391,216         (1,194,747)
                                                                                      =============      =============
            TOTAL (DECREASE) IN NET ASSETS..................................              (200,293)      (4,289,832)
NET ASSETS:
    Beginning of period.....................................................             80,766,903         80,566,610
                                                                                      -------------      -------------
    End of period...........................................................            $80,566,610        $76,276,778
                                                                                      =============      =============
</TABLE>
<TABLE>
<CAPTION>
                                                                                   SHARES
                                                     ---------------------------------------------------------------------------
                                                                 CLASS A                                       CLASS B
                                                     -----------------------------------        --------------------------------
                                                       YEAR ENDED       SIX MONTHS ENDED        YEAR ENDED   SIX MONTHS ENDED
                                                       APRIL 30,         OCTOBER 31, 1994        APRIL 30,    OCTOBER 31, 1994
                                                          1994             (UNAUDITED)            1994         (UNAUDITED)
                                                      ------------      ---------------          --------     -------------
<S>                                                        <C>             <C>                  <C>               <C>
CAPITAL SHARE TRANSACTIONS:
    Shares sold...........................                 531,050         267,709              229,412           48,526
    Shares issued for dividends reinvested                 214,378         105,534                5,666            5,068
    Shares redeemed.......................               (710,422)         (499,468)            (4,659)         (30,309)
                                                      ------------      ---------------          --------     -------------
          NET INCREASE (DECREASE)
            IN SHARES OUTSTANDING.........                  35,006        (126,225)              230,419           23,285
                                                       ==========        =============          ==========    ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
FINANCIAL HIGHLIGHTS
     Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Series' financial statements.
                                                               CLASS A SHARES                              CLASS B SHARES
                                      ------------------------------------------------------     --------------------------------
                                                                                SIX MONTHS ENDED   YEAR ENDED    SIX MONTHS ENDED
                                             YEAR ENDED APRIL 30,               OCTOBER 31, 1994    APRIL 30,    OCTOBER 31, 1994
                                     -------------------------------------------                 ----------------  --------------
PER SHARE DATA:                     1990      1991    1992       1993     1994     (UNAUDITED)   1993(1)    1994    (UNAUDITED)
                                    -----    -----    -----      ------  -----     ---------     -----      -----    ----------
    <S>                             <C>       <C>     <C>       <C>     <C>           <C>        <C>         <C>        <C>
    Net asset value,
      beginning of period...        $10.92    $10.69  $11.05    $11.41  $12.13        $11.64     $11.79      $12.13     $11.63
                                    -----    -----    -----      ------  -----     ---------     -----      -----    ----------
    INVESTMENT OPERATIONS:
    Investment income_net...          .82      .79     .75        .73    .71            .35       .19         .64        .32
    Net realized and unrealized
      gain (loss) on investments     (.23)     .37     .36        .73    (.44)         (.46)      .34        (.45)      (.45)
                                    -----    -----    -----      ------  -----     ---------     -----      -----    ----------
      TOTAL FROM INVESTMENT
          OPERATIONS........          .59      1.16    1.11      1.46      .27        (.11)       .53         .19        (.13)
                                    -----    -----    -----      ------  -----     ---------     -----      -----    ----------
    DISTRIBUTIONS:
    Dividends from investment
      income_net............          (.82)    (.79)   (.75)     (.73)    (.71)       (.35)     (.19)       (.64)       (.32)
    Dividends from net realized
      gain on investments...            --     (.01)  .  --     (.01)     (.05)        --         --        (.05)          --
    Dividends in excess of net
      realized gain on investments     --        --      --       --        --         --         --          --           --
                                    -----    -----    -----      ------  -----     ---------     -----      -----    ----------
      TOTAL DISTRIBUTIONS...         (.82)    (.80)  (.75)      (.74)     (.76)       (.35)      (.19)       (.69)       (.32)
                                    -----    -----    -----      ------  -----     ---------     -----      -----    ----------
    Net asset value, end of period   $10.69  $11.05  $11.41      $12.13   $11.64      $11.18     $12.13     $11.63      $11.18
                                     ====    =====   ======      ======   ======     ======      ======     ======       =====
TOTAL INVESTMENT RETURN(2)..          5.49%  11.23%  10.32%    13.14%    2.08%     (1.92%)(3)  15.56%(3)    1.44%     (2.34%)(3)
RATIOS/SUPPLEMENTAL DATA:
    Ratio of expenses to average
      net assets............           --     .19%  .55%        .69%      .82%     .91%(3)      1.15%(3)    1.36%       1.43%(3)
    Ratio of net investment income
      to average net assets.          7.40%   7.21%  6.65%     6.16%     5.80%     6.06%(3)      4.92%(3)    5.18%      5.46%(3)
    Decrease reflected in above
      expense ratios due to
      undertakings by the Manager     1.11%  .78%    .41%       .24%     .11%      .02%(3)    .13%(3)       .10%         .02%(3)
    Portfolio Turnover Rate.         28.44%  47.07%  24.75%   11.36%    12.04%        --       11.36%      12.04%         --
    Net Assets, end of period
      (000's Omitted).......       $43,375  $57,328  $66,873  $79,701  $76,865    $72,459      $1,066       $3,702        $3,818
(1)    From January 15, 1993 (commencement of initial offering)
       to April 30, 1993.
(2)    Exclusive of sales load.
(3)    Annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1_SIGNIFICANT ACCOUNTING POLICIES:
    Premier State Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering fifteen series including the Massachusetts Series (the "Series").
Dreyfus Service Corporation, until August 24, 1994, acted as the distributor
of the Fund's shares. Dreyfus Service Corporation is a wholly-owned
subsidiary of The Dreyfus Corporation ("Manager"). Effective August 24, 1994,
the Manager became a direct subsidiary of Mellon Bank, N.A.
    On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
    The Fund accounts separately for the assets, liabilities and operations
of each series. Expenses directly attributable to each series are charged to
that series' operations; expenses which are applicable to all series are
allocated among them on a pro rata basis.
    The Series offers both Class A and Class B shares. Class A shares are
subject to a sales charge imposed at the time of purchase and Class B shares
are subject to a contingent deferred sales charge imposed at the time of
redemption on redemptions made within five years of purchase. Other
differences between the two Classes include the services offered to and the
expenses borne by each Class and certain voting rights.
    (A) PORTFOLIO VALUATION: The Series' investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
    (B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
    The Series follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state and
certain of its public bodies and municipalities may affect the ability of
issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Series.
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
    (C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Series to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Series not to distribute such
gain.
    (D) FEDERAL INCOME TAXES: It is the policy of the Series to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2_MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
    (A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Series' net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Series'
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed the expense limitation of any state having
jurisdiction over the Series for any full fiscal year. However, the Manager
had undertaken from May 1, 1994 through June 30, 1994 to waive receipt of the
management fee payable to it by the Series in excess of an annual rate of .50
of 1% (excluding certain expenses as described above) of the Series' average
daily net assets and thereafter, had undertaken from July 1, 1994 through
July 7, 1994 to reduce the management fee paid by the Series, to the extent
that the Series' aggregate expenses (excluding certain expenses as described
above) exceeded specified annual percentages of the Series' average daily net
assets. The reduction in management fee, pursuant to the undertakings,
amounted to $7,190 for the six months ended October 31, 1994.
    Dreyfus Service Corporation retained $5,160 during the six months ended
October 31, 1994 from commissions earned on sales of the Series' Class A
shares.
    Prior to August 24, 1994, Dreyfus Service Corporation retained $620 from
contingent deferred sales charges imposed upon redemptions of the Series'
Class B shares.
    (B) On August 3, 1994, Series' shareholders approved a revised
Distribution Plan with respect to Class B shares only (the "Class B
Distribution Plan") pursuant to Rule 12b-1 under the Act. Pursuant to the
Class B Distribution Plan, effective August 24, 1994, the Fund pays the
Distributor for distributing the Series' Class B shares at an annual rate of
.50 of 1% of the value of the average daily net assets of Class B shares.
    Prior to August 24, the Distribution Plan ("prior Class B Distribution
Plan") provided that the Series pay Dreyfus Service Corporation at an annual
rate of .50 of 1% of the value of the Series' Class B shares average daily
net assets, for the costs and expenses in connection with advertising,
marketing and distributing the Series' Class B shares. Dreyfus Service
Corporation made payments to one or more Service Agents based on the value of
the Series' Class B shares owned by clients of the Service Agent.
    During the six months ended October 31, 1994, $3,830 was charged to the
Series pursuant to the Class B Distribution Plan and $6,115 was charged to
the Series pursuant to the prior Class B Distribution Plan.
PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
    (C) Under the Shareholder Services Plan, the Series pays the Distributor,
at an annual rate of .25 of 1% of the value of the average daily net assets
of Class A and Class B shares for servicing shareholder accounts. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Series and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. From May 1, 1994 through August 23,
1994, $60,131 and $3,058 were charged to Class A and Class B shares,
respectively, by Dreyfus Service Corporation. From August 24, 1994 through
October 31, 1994, $35,111 and $1,915 were charged to Class A and Class B
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
    (D) Prior to August 24, 1994 certain officers and trustees of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each trustee who is not an "affiliated person"
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting.
NOTE 3_SECURITIES TRANSACTIONS:
    The aggregate amount of sales of securities amounted to $5,944,672 for
the six months ended October 31, 1994, and consisted entirely of long-term
municipal investments.
    At October 31, 1994, accumulated net unrealized appreciation on
investments was $206,409, consisting of $3,029,627 gross unrealized
appreciation and $2,823,218 gross unrealized depreciation.
    At October 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

PREMIER STATE MUNICIPAL BOND FUND, Massachusetts Series
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF TRUSTEES
PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
    We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Premier State Municipal Bond Fund,
Massachusetts Series (one of the series constituting the Premier State
Municipal Bond Fund) as of October 31, 1994, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended October 31, 1994. These financial statements and financial
highlights are the responsibility of the Fund's management.
    We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
    Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
    We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
April 30, 1994 and financial highlights for each of the five years in the
period ended April 30, 1994 and in our report dated June 7, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.

                                 (Ernst & Young LLP Signature Logo)

New York, New York
December 6, 1994


Premier State Municipal
Bond Fund, Massachusetts Series
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940




Further information is contained
in the Prospectus, which must
precede or accompany this report.





Printed in U.S.A.                    063/622SA9410BKR


Semi-Annual Report
Premier State
Municipal Bond Fund
Massachusetts Series
October 31, 1994

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