Note 1--Organization and Business:
The MainStay Funds (the "Trust") was organized on January 9, 1986 as a Massachusetts business trust. The Trust is registered under
the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and is
comprised of twenty-two funds (collectively referred to as the "Funds"). These financial statements and notes relate only to MainStay
California Tax Free Fund (the "Fund").
The Fund currently offers two classes of shares. Class A shares are offered at net asset value per share plus an initial sales charge.
Class B shares, whose distribution commenced on January 3, 1995, are offered without an initial sales charge, although a declining
contingent deferred sales charge may be imposed on redemptions made within six years of purchase. Class A shares and Class B shares
bear the same voting (except for issues that relate solely to one class), dividend, liquidation and other rights and conditions except that
the Class B shares are subject to higher distribution fee rates. Each class of shares bears distribution and/or service fee payments under
a distribution plan pursuant to Rule 12b-1 under the 1940 Act.
The Fund invests substantially all of its assets in debt obligations issued by political subdivisions and authorities in the State of
California and the Commonwealth of Puerto Rico. The issuer's ability to meet its obligations may be affected by economic and political
developments in the State of California and the Commonwealth of Puerto Rico.
Note 2--Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Fund:
Valuation of Fund Shares. The net asset value per share of each class of shares is calculated on each day the New York Stock Exchange
(the "Exchange") is open for trading as of the close of regular trading on the Exchange. The net asset value per share of each class of
shares is determined by taking the assets attributable to a class of shares, subtracting the liabilities attrib