NSAR-B

      PAGE  1
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      PAGE  2
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020 B000002 13-5108880
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      PAGE  3
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      PAGE  4
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      PAGE  5
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      PAGE  6
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      PAGE  7
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      PAGE  8
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      PAGE  9
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SIGNATURE   JEROME L. DUFFY                              
TITLE       TREASURER           
 

EX-27.COMBINED

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000814955
<NAME> KEMPER ADJUSTABLE RATE U.S. GOVERNMENT FUND

   <NUMBER> 00
   <NAME> COMBINED FOR ALL CLASSES
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          AUG-31-1995
<PERIOD-END>                               AUG-31-1995
<INVESTMENTS-AT-COST>                          141,704
<INVESTMENTS-AT-VALUE>                         142,538
<RECEIVABLES>                                    2,678
<ASSETS-OTHER>                                      93
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 145,309
<PAYABLE-FOR-SECURITIES>                        15,050
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          502
<TOTAL-LIABILITIES>                             15,552
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       139,617
<SHARES-COMMON-STOCK>                                0
<SHARES-COMMON-PRIOR>                                0
<ACCUMULATED-NII-CURRENT>                          904
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                       (11,598)
<OVERDISTRIBUTION-GAINS>                             0
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<DIVIDEND-INCOME>                                    0
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<OTHER-INCOME>                                       0
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<REALIZED-GAINS-CURRENT>                       (3,301)
<APPREC-INCREASE-CURRENT>                        2,153
<NET-CHANGE-FROM-OPS>                            8,097
<EQUALIZATION>                                   (591)
<DISTRIBUTIONS-OF-INCOME>                      (9,118)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
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<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
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<OVERDIST-NET-GAINS-PRIOR>                           0
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<PER-SHARE-NAV-BEGIN>                                0
<PER-SHARE-NII>                                      0
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<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

 

EX-27.CLASSA

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000814955
<NAME> KEMPER ADJUSTABLE RATE U.S. GOVERNMENT FUND

   <NUMBER> 01
   <NAME> CLASS A
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          AUG-31-1995
<PERIOD-END>                               AUG-31-1995
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<AVG-DEBT-PER-SHARE>                                 0
        

 

EX-27.CLASSB

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES. THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000814955
<NAME> KEMPER ADJUSTABLE RATE U.S. GOVERNMENT FUND

   <NUMBER> 02
   <NAME> CLASS B
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          AUG-31-1995
<PERIOD-END>                               AUG-31-1995
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<RECEIVABLES>                                        0
<ASSETS-OTHER>                                       0
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<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
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<AVERAGE-NET-ASSETS>                                 0
<PER-SHARE-NAV-BEGIN>                             8.32
<PER-SHARE-NII>                                    .43
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<EXPENSE-RATIO>                                   .019
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

 

EX-27.CLASSC

 

<ARTICLE> 6
<LEGEND>
PER SHARE AND RATIO INFORMATION IS SHOWN AT THE CLASS LEVEL.  ALL OTHER
INFORMATION IS COMBINED FOR ALL CLASSES.  THIS SCHEDULE CONTAINS SUMMARY
FINANCIAL INFORMATION EXTRACTED FROM THE 1995 ANNUAL REPORT TO SHAREHOLDERS AND 
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

<CIK> 0000814955
<NAME> KEMPER ADJUSTABLE RATE U.S. GOVERNMENT FUND

   <NUMBER> 03
   <NAME> CLASS C
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   12-MOS
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<PERIOD-END>                               AUG-31-1995
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EX-99.I/CLETTER

           SUPPLEMENTARY REPORT OF INDEPENDENT AUDITORS


Board of Trustees
Kemper Funds


In  planning and performing our audit of the financial statements  of
each  of  the  Kemper Funds listed in Exhibit A attached hereto  (the
"Funds")  for  the  year ended August 31, 1995, we  considered  their
internal  control  structure, including procedures  for  safeguarding
securities,  in  order to determine our auditing procedures  for  the
purpose  of expressing our opinion on their financial statements  and
to  comply  with  the  requirements of Form  N-SAR,  not  to  provide
assurance on the internal control structure.

The  management  of  the Funds is responsible  for  establishing  and
maintaining  an  internal  control  structure.   In  fulfilling  this
responsibility, estimates and judgments by management are required to
assess  the  expected benefits and related costs of internal  control
structure  policies  and procedures.  Two of  the  objectives  of  an
internal control structure are to provide management with reasonable,
but  not absolute, assurance that assets are safeguarded against loss
from  unauthorized  use  or  disposition and  that  transactions  are
executed  in accordance with management's authorization and  recorded
properly  to permit preparation of financial statements in conformity
with generally accepted accounting principles.

Because  of  inherent limitations in any internal control  structure,
errors  or  irregularities  may occur and  not  be  detected.   Also,
projection  of any evaluation of the structure to future  periods  is
subject  to the risk that it may become inadequate because of changes
in  conditions or that the effectiveness of the design and  operation
may deteriorate.

Our  consideration  of  the  internal  control  structure  would  not
necessarily  disclose all matters in the internal  control  structure
that might be material weaknesses under standards established by  the
American  Institute  of  Certified Public  Accountants.   A  material
weakness is a condition in which the design or operation of the
specific  internal control structure elements does not  reduce  to  a
relatively  low  level  the  risk that errors  or  irregularities  in
amounts   that  would  be  material  in  relation  to  the  financial
statements  being  audited may occur and not  be  detected  within  a
timely  period by employees in the normal course of performing  their
assigned  functions.  However,  we noted  no  matters  involving  the
internal  control  structure, including procedures  for  safeguarding
securities,  that  we consider to be material weaknesses  as  defined
above as of August 31, 1995.

This  report  is  intended  solely for the  information  and  use  of
management and the Securities and Exchange Commission.


                                        ERNST & YOUNG LLP


Chicago, Illinois
October 13, 1995





Kemper Funds                                      Exhibit A

August 31, 1995



Kemper Adjustable Rate U.S. Government Fund
Kemper State Tax-Free Income Series:
  Kemper California Tax-Free Income Fund
  Kemper Florida Tax-Free Income Fund
  Kemper Michigan Tax-Free Income Fund
  Kemper New Jersey Tax-Free Income Fund
  Kemper New York Tax-Free Income Fund
  Kemper Ohio Tax-Free Income Fund
  Kemper Pennsylvania Tax-Free Income Fund
  Kemper Texas Tax-Free Income Fund

EX-99.I/CLETTER

                 Report of Independent Auditors


The Board of Trustees
Kemper Funds

We have examined the accompanying description of Kemper Financial
Services, Inc. ("KFS") policies and procedures applicable to  the
multiple distribution system for calculating the net asset value,
dividends  and  distributions of, and for allocating  income  and
expenses  to,  various classes of shares of each  of  the  Kemper
Funds  listed  in  Exhibit A attached hereto (the  "Funds").  Our
examination  included  procedures to obtain reasonable  assurance
about  whether (1) the accompanying description presents  fairly,
in  all  material  respects,  the aspects  of  KFS  policies  and
procedures  that  may be relevant to the Funds' internal  control
structure,  (2)  the  control structure policies  and  procedures
included in the description were suitably designed to achieve the
control  objectives  specified  in  the  description,  if   those
policies  and  procedures were complied with satisfactorily,  and
(3) such policies and procedures had been placed in operation  as
of  August  31, 1995.  The control objectives were  specified  by
KFS.   Our examination was performed in accordance with standards
established  by  the  American  Institute  of  Certified   Public
Accountants and included those procedures we considered necessary
in  the  circumstances to obtain a reasonable basis for rendering
our opinion.

In   our   opinion,   the   accompanying   description   of   the
aforementioned   portions  of  the  internal  control   structure
presents  fairly, in all material respects, the relevant  aspects
of  KFS's  policies  and  procedures  that  had  been  placed  in
operation  as  of  August 31, 1995.  Also, in  our  opinion,  the
policies  and procedures, as described, are suitably designed  to
provide   reasonable   assurance  that  the   specified   control
objectives  would  be  achieved if  the  described  policies  and
procedures were complied with satisfactorily.

In  addition to the procedures we considered necessary to  render
our  opinion as expressed in the previous paragraph,  we  applied
tests to specific policies and procedures, listed in Section III.
The  nature, timing, extent, and results of the tests are  listed
in  Section IV.  This information has been provided to the  Funds
and  to their auditors to be taken into consideration, along with
information  about the internal control structure at  the  Funds,
when  making assessments of control risks for the Funds.  In  our
opinion,  the  policies  and procedures that  were  tested,  were
operating  with  sufficient effectiveness to provide  reasonable,
but not absolute, assurance that the control objectives specified
in Section II were achieved as of August 31, 1995.

The  relative effectiveness and significance of specific policies
and  procedures at KFS and their effect on assessments of control
risk  at  the Funds are dependent on their interaction  with  the
policies, procedures, and other factors present at the Funds.

The  description  and  tests of operating  effectiveness  of  the
policies  and  procedures at KFS is as of August 31,  1995.   Any
projection  of such information to the future is subject  to  the
risk  that,  because  of change, the description  may  no  longer
portray the system in existence.  The potential effectiveness  of
specified  policies and procedures at KFS is subject to  inherent
limitations and, accordingly, errors or irregularities may  occur
and   not  be  detected.   Furthermore,  the  projection  of  any
conclusions, based on our findings, to future periods is  subject
to  the  risk  that  changes  may  alter  the  validity  of  such
conclusions.

This  report  is intended for use by the management of  KFS,  the
Funds  and  their  auditors,  and  the  Securities  and  Exchange
Commission.



                                                  ERNST & YOUNG
LLP


Chicago, Illinois
October 13, 1995



SECTION I

Description of the System

Kemper Financial Services, Inc. ("KFS") implemented plans which
allow each of the Kemper Funds listed in Exhibit A attached
hereto (the "Funds") to issue multiple classes of shares.

Under   the  multiple  distribution  system,  the  Funds  provide
investors with the option of purchasing shares in any or  all  of
the  following four ways: (i) with a front-end sales load  and  a
service  fee  (the "Front-End Load Option" or "Class A  shares");
(ii)  without a front-end sales load, but subject to a contingent
deferred  sales charge as well as to a distribution fee  pursuant
to  a Rule 12b-1 Plan and to a service fee (the "Deferred Option"
or  "Class  B shares"); (iii) without a front-end sales  load  or
contingent deferred sales charge but subject to a Rule 12b-1 Plan
providing for a distribution fee and to a service fee (the  Level
Load  Option" or "Class C shares"); and (iv) without a  front-end
sales load, contingent deferred sales charge, distribution fee or
service  fee  ("Institutional Option" or "Class I  shares").   In
addition,  the  Funds may from time to time create  one  or  more
additional classes of shares, the terms of which may differ  from
the Class A, B, C and I shares.  Class B shares are converted  to
Class  A  shares six years after issuance.  Class C and I  shares
have no conversion feature.  No Class I shares have been issued.

The  net  asset value of all outstanding shares of each class  is
computed   based  on  the  net  assets  and  shares   outstanding
attributable to each class.  All expenses incurred by  each  Fund
are  allocated to each class based on the relative percentage  of
adjusted  net  assets except for the expenses of the distribution
plan  which are allocated to Class B and C shares, administrative
service fees which are allocated to Class A, B and C shares,  and
class  specific expenses which will be borne exclusively by  that
class.  Due to the specific allocation of expenses that are borne
solely  by certain classes, the net income attributable  to,  and
the dividends paid by, each class may vary.


SECTION II

Specific Control Objectives

Following  are  the specific control objectives  of  each  Fund's
system  of internal accounting control relating to the allocation
of  income, expenses, gains and losses and the calculation of NAV
and dividends/distributions for the four classes of shares:

  1. Direct  expenses  charged  to  each  class  of  shares   are
     correctly  recorded  in  the  Fund  accounting  records  and
     allocated to the correct class of shares.
     
  2. Income, other operating expenses and realized and unrealized
     gains  and  losses are allocated properly to each  class  of
     shares  based upon the relative net assets of each class  of
     shares  at the beginning of the day after adjusting for  the
     prior day's Fund share activity.
     
  3. Dividend  rates and daily per share NAV's for each class  of
     shares reflect the proper allocation of income, expenses and
     realized  and  unrealized gains and  losses,  including  the
     proper  amount of any direct expenses charged to each  class
     of shares.

SECTION III

Procedures to Achieve Specific Control Objectives

The  following additional procedures will be performed  for  each
Fund to meet the specific control objectives:

  1. Preparation   of   the  Multi-Class  Pricing-NAV   Worksheet
     ("Worksheet") daily.
     
  2. A  determination  of  the dividends  by  class  is  made  by
     dividing daily net investment income allocated to each class
     by  the  number of shares of that class eligible to  receive
     dividends (record shares).
     
     The  periodic distribution rate for realized gains  will  be
     determined by taking total net realized gains for each class
     and dividing by total record date shares.
     
  3. Upon completion of the Worksheet and the calculation of  the
     dividend rate, and prior to furnishing the computed NAV  and
     dividend   rate  to  the  Shareholder  Service  Agent,   the
     Worksheet  and calculation will be reviewed for accuracy  by
     an  accounting  supervisor ("Final  Reviewer").   The  Final
     Reviewer  will  initial the Worksheet  as  evidence  of  the
     review.
     
  4. If  the Final Reviewer notes any unusual fluctuation in  the
     NAV or daily dividend rates between the classes of shares of
     a  Fund, he or she will research the matter and document the
     reasons for, and the reasonableness of, the fluctuation.
     
  5. On a monthly basis, a reconciliation of all account balances
     for  each  class  of shares to the general  ledger  will  be
     performed.    The  reconciliation  will  be   reviewed   and
     initialed by the reviewer.


SECTION IV

Tests   of  Effectiveness  of  Control  Structure  Policies   and
Procedures

Our  tests of the effectiveness of control structure policies and
procedures were designed to determine whether:

  1. The description of the KFS' policies and procedures included
     in Section I of this report presents fairly, in all material
     respects,  those aspects of the KFS' control structure  that
     may  be  relevant to a user organization's internal  control
     structure,
     
  2. the  control structure policies and procedures described  in
     Section III of this report were suitably designed to achieve
     the control objectives defined in Section II of this report,
     if   those  policies  and  procedures  were  complied   with
     satisfactorily,
     
  3. the  control structure policies and procedures described  in
     Section  III of this report had been placed in operation  as
     of the date specified, and
     
  4. the control structure policies and procedures were operating
     with sufficient effectiveness to provide reasonable, but not
     absolute,  assurance that the control objectives in  Section
     II were achieved as of August 31, 1995.


Our  tests of the effectiveness of control structure policies and
procedures  included the following procedures, to the  extent  we
considered  necessary:  (a) a review of the  KFS'  organizational
structure,    including    the    segregation    of    functional
responsibilities, policy statements, and personnel policies,  (b)
discussions with management, accounting, administrative and other
personnel  who  are  assigned  responsibilities  for  developing,
ensuring adherence to and applying control structure policies and
procedures,  and (c) observations of personnel in the performance
of their assigned duties.

Our  tests of the effectiveness of control structure policies and
procedures  included such other tests as we considered  necessary
in  the  circumstances  to evaluate whether  those  policies  and
procedures,  and  the  extent  of  compliance  with   them,   are
sufficient  to  provide reasonable, but not  absolute,  assurance
that  the specified control objectives were achieved as of August
31,  1995.  Our tests of the operational effectiveness of control
structure  policies  and procedures were designed  to  cover  the
calculation  as  of  August 31, 1995 for each of  the  procedures
listed in Section III which satisfy the control objectives listed
in  Section II of this report.  In selecting particular tests  of
the  operational effectiveness  of control structure policies and
procedures,  we  considered the (a) nature  of  the  items  being
tested,  (b)  the  kinds and competence of  available  evidential
matter,  (c)  the nature of the audit objectives to be  achieved,
(d)  the  assessed  level of control risk, and (e)  the  expected
efficiency and effectiveness of the tests.

Tests   of  effectiveness  of  control  structure  policies   and
procedures included:

     Tests   of  source  documentation  to  ensure  validity   of
     information.
     
     Tests  of input and supervisory control procedures in  place
     to  ensure accuracy, completeness, validity and integrity of
     processing.
     
     Tests of recalculation of output to verify accuracy.
     
     Tests  of  output control procedures and resultant documents
     and  reports  relative  to specific calculations  to  ensure
     accurate  and  timely  updates of  accounting  records  were
     achieved.


Testing  procedures were designed and performed to enable  us  to
conclude that the control objectives listed in Section II of this
report were achieved as of
August 31, 1995.




Kemper Funds                                      Exhibit A

August 31, 1995




Kemper Adjustable Rate U.S. Government Fund
Kemper State Tax-Free Income Series:
  Kemper California Tax-Free Income Fund
  Kemper Florida Tax-Free Income Fund
  Kemper Michigan Tax-Free Income Fund
  Kemper New Jersey Tax-Free Income Fund
  Kemper New York Tax-Free Income Fund
  Kemper Ohio Tax-Free Income Fund
  Kemper Pennsylvania Tax-Free Income Fund
  Kemper Texas Tax-Free Income Fund