<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>c62257n-30d.txt
<DESCRIPTION>SEMIANNUAL REPORT
<TEXT>

<PAGE>   1

<TABLE>
<S>                                        <C>
                         Table of Contents

                                  OVERVIEW
                    LETTER TO SHAREHOLDERS       1
                         ECONOMIC SNAPSHOT       2

                       PERFORMANCE SUMMARY
                         RETURN HIGHLIGHTS       4

                     PORTFOLIO AT A GLANCE
                            CREDIT QUALITY       6
                SIX-MONTH DIVIDEND HISTORY       6
                          TOP FIVE SECTORS       7
          NET ASSET VALUE AND MARKET PRICE       7
           Q&A WITH YOUR PORTFOLIO MANAGER       8
                         GLOSSARY OF TERMS      12

                            BY THE NUMBERS
                  YOUR TRUST'S INVESTMENTS      13
                      FINANCIAL STATEMENTS      17
             NOTES TO FINANCIAL STATEMENTS      22
                DIVIDEND REINVESTMENT PLAN      26
    TRUST OFFICERS AND IMPORTANT ADDRESSES      28
</TABLE>

Long-term
investment
strategies can
help you
cope with
uncertain markets.

              NOT FDIC INSURED  MAY LOSE VALUE  NO BANK GUARANTEE
<PAGE>   2

 OVERVIEW

LETTER TO SHAREHOLDERS
May 18, 2001

Dear Shareholder,

The first few months of 2001 were challenging for everyone. The markets
experienced dramatic downshifts which affected many investors, no matter the
size of their portfolios. We realize this is unsettling to
shareholders--especially those who may be accustomed to positive returns--but it
is important to keep in mind that maintaining a long-term investment horizon may
be your most efficient strategy for coping with uncertain markets.

To help you make sense of recent events and put your trust's performance into
perspective, this report examines how your trust's portfolio manager invested
your assets. Packed with information and insightful commentary, this report
includes an interview with the trust manager, a complete list of the trust's
holdings at the end of the reporting period, charts and graphs which summarize
interest rate and inflation trends, and other information to help you better
understand your investment.

With nearly four generations of investment management experience, we at Van
Kampen understand market declines are inevitable--and new opportunities may
arise at any time. So, as you strive to craft a successful investment strategy
and try to protect yourself against future downturns, consider these time-tested
                  investing principles:

                  - DIVERSIFY--Owning a portfolio that includes a
                     variety of stock funds and fixed-income funds
  may moderate your investment risk and improve your long-term portfolio
  performance.

- SEEK FINANCIAL ADVICE--Your financial advisor can help you develop a
  personalized investment strategy based on your age, family status and goals.
  When comparing asset allocation strategies to your personal financial
  situation, you should consider your time frame and all of your personal
  savings and investments, in addition to your retirement assets and risk
  tolerance level. Your financial advisor can help you assess your individual
  situation before you make any decisions. Though no portfolio is immune to
  volatility, your advisor can help you structure a portfolio designed to
  address your long-term financial goals.

We are grateful for your continued trust in Van Kampen. We appreciate the
opportunity to manage your assets while you enjoy true wealth--family, friends,
and life's daily pleasures.

Sincerely,

[SIG]

Richard F. Powers, III
President and CEO
Van Kampen Investment Advisory Corp.

                                        1
<PAGE>   3

ECONOMIC SNAPSHOT

ECONOMIC GROWTH
THE U.S. ECONOMY WAS STRONGER THAN EXPECTED IN THE FIRST QUARTER OF 2001, WITH
FIRST-QUARTER GROSS DOMESTIC PRODUCT GROWING AT A PRELIMINARY 2 PERCENT
PACE--DOUBLE THE RATE ANALYSTS WERE EXPECTING, BUT SLOWER THAN THAT EXPERIENCED
IN RECENT YEARS. THIS GROWTH PROVIDED EVIDENCE THAT THE FEDERAL RESERVE'S (THE
FED) EFFORTS TO WARD OFF A RECESSION MIGHT BE TAKING HOLD. THE NEWS OF
EXPANSION, COMING AS IT DID ON THE HEELS OF A HOST OF NEGATIVE CORPORATE
EARNINGS REPORTS, COMPLICATED THE ECONOMIC LANDSCAPE AND CAUSED SOME TO WONDER
IF FEARS OF A DOWNTURN WERE OVERSTATED.

CONSUMER SPENDING AND EMPLOYMENT
A STEADY STREAM OF LAYOFFS TOOK THEIR TOLL ON U.S. EMPLOYMENT. THE JOBLESS RATE
ROSE 0.2 PERCENT IN APRIL TO AN ANNUALIZED 4.5 PERCENT. WHILE EXTREMELY LOW BY
HISTORICAL STANDARDS, THIS WAS THE HIGHEST LEVEL OF UNEMPLOYMENT RECORDED IN
MORE THAN TWO YEARS.

ALSO, AFTER A ONE-MONTH REVERSAL, APRIL CONSUMER CONFIDENCE SUNK TO ITS FEBRUARY
LEVEL, THE LOWEST RECORDED SINCE 1996. MOUNTING LAYOFFS, RISING ENERGY COSTS AND
A WEAKENING STOCK MARKET HELPED FUEL THE PESSIMISM. DESPITE THESE NEGATIVE
FACTORS, CONSUMERS CONTINUED TO OPEN THEIR WALLETS, INCREASING THEIR SPENDING BY
3.1 PERCENT DURING THE YEAR'S FIRST QUARTER.

INTEREST RATES AND INFLATION
THE FED CUT INTEREST RATES FOUR TIMES THROUGH APRIL 30, CITING WEAK BUSINESS
INVESTMENT AND THE NEGATIVE IMPACT OF A DECLINING STOCK MARKET ON CONSUMER
SPENDING. TWO OF THE RATE REDUCTIONS WERE ESPECIALLY SURPRISING BECAUSE THEY
CAME BETWEEN REGULARLY SCHEDULED FED POLICY MEETINGS. THIS DEPARTURE FROM
CONVENTION SUGGESTS THE SERIOUSNESS WITH WHICH THE NATION'S CENTRAL BANK
CONSIDERS THREATS TO FURTHER ECONOMIC GROWTH. ANALYSTS EXPECTED ANOTHER RATE CUT
AT THE FED'S MAY MEETING. (NOTE: ON MAY 15, THE FEDERAL RESERVE CUT INTEREST
RATES FOR THE FIFTH TIME IN AS MANY MONTHS--LOWERING RATES BY 0.50 PERCENT
DURING ITS REGULARLY SCHEDULED MEETING.)

THE CONSUMER PRICE INDEX, A COMMON MEASURE OF THE INFLATION RATE, ROSE JUST 0.3
PERCENT IN APRIL 2001 AND 3.3 PERCENT FOR THE PREVIOUS 12 MONTHS. SOME ANALYSTS
WERE PLEASED WITH THESE NUMBERS, BUT THEY ALSO NOTED THAT INCREASED SUMMER
DEMAND FOR ELECTRICITY AND GASOLINE COULD RESULT IN HIGHER INFLATION LATER IN
THE YEAR.

                                        2
<PAGE>   4

U.S. GROSS DOMESTIC PRODUCT

SEASONALLY ADJUSTED ANNUALIZED RATES
(March 31, 1999--March 31, 2001)
[BAR GRAPH]

<TABLE>
<CAPTION>
                                                                      U.S. GROSS DOMESTIC PRODUCT
                                                                      ---------------------------
<S>                                                           <C>
Mar 99                                                                           3.50
Jun 99                                                                           2.50
Sep 99                                                                           5.70
Dec 99                                                                           8.30
Mar 00                                                                           4.80
Jun 00                                                                           5.60
Sep 00                                                                           2.20
Dec 00                                                                           1.00
Mar 01                                                                           2.00
</TABLE>

Source: Bureau of Economic Analysis

INTEREST RATES AND INFLATION

(April 30, 1999--April 30, 2001)
[LINE GRAPH]

<TABLE>
<CAPTION>
                                                                       INTEREST RATES                    INFLATION RATES
                                                                       --------------                    ---------------
<S>                                                           <C>                                <C>
Apr 99                                                                      4.75                               2.30
                                                                            4.75                               2.10
                                                                            5.00                               2.00
Jul 99                                                                      5.00                               2.10
                                                                            5.25                               2.30
                                                                            5.25                               2.60
Oct 99                                                                      5.25                               2.60
                                                                            5.50                               2.60
                                                                            5.50                               2.70
Jan 00                                                                      5.50                               2.70
                                                                            5.75                               3.20
                                                                            6.00                               3.80
Apr 00                                                                      6.00                               3.10
                                                                            6.50                               3.20
                                                                            6.50                               3.70
Jul 00                                                                      6.50                               3.70
                                                                            6.50                               3.40
                                                                            6.50                               3.50
Oct 00                                                                      6.50                               3.40
                                                                            6.50                               3.40
                                                                            6.50                               3.40
Jan 01                                                                      5.50                               3.70
                                                                            5.50                               3.50
                                                                            5.00                               2.90
Apr 01                                                                      4.50                               3.30
</TABLE>

Interest rates are represented by the closing midline federal funds target rate
on the last day of each month. Inflation is indicated by the annual percentage
change of the Consumer Price Index for all urban consumers at the end of each
month.

Source: Bloomberg

                                        3
<PAGE>   5

       PERFORMANCE SUMMARY

RETURN HIGHLIGHTS

(as of April 30, 2001)

------------------------------
NYSE Ticker Symbol - VPV
------------------------------

<TABLE>
<CAPTION>
                                                  MARKET(1)    NAV(2)
--------------------------------------------------------------------------
<S>                                               <C>         <C>      <C>
Six-month total return                              13.97%       4.97%
--------------------------------------------------------------------------
One-year total return                               17.50%      12.40%
--------------------------------------------------------------------------
Five-year average annual total return                7.64%       6.56%
--------------------------------------------------------------------------
Life-of-Fund average annual total return             4.64%       5.53%
--------------------------------------------------------------------------
Commencement date                                             04/30/93
--------------------------------------------------------------------------
Distribution rate as a % of closing common stock
price(3)                                                         5.75%
--------------------------------------------------------------------------
Taxable-equivalent distribution rate as a % of
closing common stock price(4)                                    9.24%
--------------------------------------------------------------------------
Preferred share rate(5)                                          3.85%
--------------------------------------------------------------------------
Net asset value                                                 $15.25
--------------------------------------------------------------------------
Closing common stock price                                      $13.57
--------------------------------------------------------------------------
Six-month high common stock price (03/05/01)                    $14.00
--------------------------------------------------------------------------
Six-month low common stock price (12/05/00)                   $12.0625
--------------------------------------------------------------------------
</TABLE>

                                        4
<PAGE>   6

(1) Total return based on market price assumes an investment at the market price
    at the beginning of the period indicated, reinvestment of all distributions
    for the period in accordance with the Trust's dividend reinvestment plan,
    and sale of all shares at the closing common stock price at the end of the
    period indicated.

(2) Total return based on net asset value (NAV) assumes an investment at the
    beginning of the period indicated, reinvestment of all distributions for the
    period, and sale of all shares at the end of the period, all at NAV.

(3) Distribution rate represents the monthly annualized distributions of the
    Trust at the end of the period and not the earnings of the Trust.

(4) The taxable-equivalent distribution rate is calculated assuming a 37.8%
    combined federal and state income tax bracket, which takes into
    consideration the deductibility of individual state taxes paid.

(5) See "Notes to Financial Statements" footnote #4, for more information
    concerning Preferred Share reset periods.

    A portion of the interest income may be taxable for those investors subject
    to the federal alternative minimum tax (AMT).

    Past performance is no guarantee of future results. Investment return, stock
    price and net asset value will fluctuate and Trust shares, when sold, may be
    worth more or less than their original cost. An investment in the Trust is
    subject to investment risks, and you could lose money on your investment in
    the Trust. As a result of recent market activity, current performance may
    vary from the figures shown.

                                        5
<PAGE>   7

               PORTFOLIO AT A GLANCE

CREDIT QUALITY

(as a percentage of long-term investments)

<TABLE>
<CAPTION>
As of April 30, 2001
<S>                    <C>     <C>
- AAA/Aaa............  74.4%   [PIE CHART]
- AA/Aa..............  13.1%
- A/A................   4.5%
- BBB/Baa............   8.0%
<CAPTION>
As of October 31, 2000
<S>                    <C>     <C>
- AAA/Aaa............  72.9%   [PIE CHART]
- AA/Aa..............  13.7%
- A/A................   5.0%
- BBB/Baa............   8.4%
</TABLE>

Based upon the credit quality ratings as issued by Standard & Poor's Credit
Market Services/Moody's Investor Services, respectively. Subject to change
daily.

SIX-MONTH DIVIDEND HISTORY

(for the six months ending April 30, 2001, for common shares)
[BAR GRAPH]

<TABLE>
<CAPTION>
                                                                               DIVIDENDS
                                                                               ---------
<S>                                                           <C>
11/00                                                                            0.065
12/00                                                                            0.060
1/01                                                                             0.060
2/01                                                                             0.065
3/01                                                                             0.065
4/01                                                                             0.065
</TABLE>

The dividend history represents dividends that were paid on the trust and is no
guarantee of the trust's future dividends.

                                        6
<PAGE>   8

TOP FIVE SECTORS*

(as a percentage of long-term investments)
[BAR GRAPH]

<TABLE>
<CAPTION>
                                                                       APRIL 30, 2001                    OCTOBER 31, 2000
                                                                       --------------                    ----------------
<S>                                                           <C>                                <C>
Health Care                                                                16.20                              15.50
Transportation                                                             14.50                              12.80
Higher Education                                                           13.80                               9.90
Single-Family Housing                                                      11.90                              12.10
General Purpose                                                            11.40                              14.20
</TABLE>

* Subject to change daily.

NET ASSET VALUE AND MARKET PRICE

(based upon quarter-end values--April 1993 through April 2001)
[LINE GRAPH]

<TABLE>
<CAPTION>
                                                                      NET ASSET VALUE                      MARKET PRICE
                                                                      ---------------                      ------------
<S>                                                           <C>                                <C>
4/93                                                                      14.9000                            15.0000
                                                                          15.2600                            14.5000
                                                                          15.7900                            14.8750
12/93                                                                     15.7400                            14.5000
                                                                          13.5100                            12.6250
                                                                          13.4200                            12.8750
                                                                          13.1700                            11.2500
12/94                                                                     12.5300                            10.7500
                                                                          13.9500                            12.7500
                                                                          14.1000                            12.8750
                                                                          14.3800                            12.3750
12/95                                                                     15.1400                            12.3750
                                                                          14.5200                            12.7500
                                                                          14.3300                            12.0000
                                                                          14.6700                            12.2500
12/96                                                                     14.9600                            12.3750
                                                                          14.5800                            12.3750
                                                                          15.0600                            13.0625
                                                                          15.4400                            13.6250
12/97                                                                     15.7500                            13.6250
                                                                          15.7700                            14.2500
                                                                          15.7700                            14.5000
                                                                          16.0900                            14.7500
12/98                                                                     15.9000                            14.9375
                                                                          15.8200                            14.5000
                                                                          15.1300                            13.6875
                                                                          14.6900                            13.0000
12/99                                                                     14.2200                            11.8750
                                                                          14.5200                            12.0000
                                                                          14.5400                            12.6875
                                                                          14.7300                            12.6875
12/00                                                                     15.5800                            12.9375
                                                                          15.6500                            13.4000
4/01                                                                      15.2500                            13.5700
</TABLE>

The solid line above represents the trust's net asset value (NAV), which
indicates overall changes in value among the trust's underlying securities. The
trust's market price is represented by the dashed line, which indicates the
price the market is willing to pay for shares of the trust at a given time.
Market price is influenced by a range of factors, including supply and demand
and market conditions.

                                        7
<PAGE>   9

                                                                         [PHOTO]

Q&A WITH YOUR PORTFOLIO MANAGER

WE RECENTLY SPOKE WITH THE PORTFOLIO MANAGER OF THE VAN KAMPEN
PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST ABOUT THE KEY EVENTS AND ECONOMIC
FORCES THAT SHAPED THE MARKETS AND INFLUENCED THE TRUST'S RETURN DURING THE SIX
MONTHS ENDED APRIL 30, 2001. DENNIS S. PIETRZAK, PORTFOLIO MANAGER, HAS MANAGED
THE TRUST SINCE AUGUST 1995 AND HAS WORKED IN THE INVESTMENT INDUSTRY SINCE
1968. THE FOLLOWING DISCUSSION REFLECTS HIS VIEWS ON THE TRUST'S PERFORMANCE.

Q  WHAT WERE THE MOST IMPORTANT
   DEVELOPMENTS IN THE FIXED-INCOME MARKETS AND HOW DID
   THE TRUST PERFORM DURING THE REPORTING PERIOD?

A   The markets seesawed between
extremes during the past six months, a very volatile time for investors across
the board. As the reporting period began, investors were still concerned about
the possibility that rising inflation would force the Federal Reserve Board (the
"Fed") to boost short-term interest rates and slow the economy. Since then the
economy has reversed course, and the opposite scenario has some investors
concerned.

    The nation's economy showed signs of a significant slowdown during the
fourth quarter of last year, causing some investors to worry that decreased
business activity would hurt corporate earnings, drag down production, and
potentially lead to a recession. Warning signs included a decline in industrial
production, down from 6.7 percent in June to 4.7 percent in November 2000. By
December 2000, manufacturers were operating well below maximum output levels as
capacity utilization fell to just 79 percent. The fourth-quarter gross domestic
product (GDP) grew by only 1.0 percent, the lowest increase in more than four
years and the second consecutive quarter in which the growth rate had declined.

    By late in the fourth quarter, many investors thought interest-rate cuts by
the Fed were imminent, triggering a broad rally in the municipal bond market.
These expectations were met in the first week of January, as the Fed took the
unusual step of cutting the target federal funds rate prior to its
regularly-scheduled Open Market Committee meeting. This rate cut--which amounted
to half a percentage point--extended the rally well into the first month of the
year.

    Further easing continued in late January and in March, as the economy
remained weak and the stock market stumbled. By the end of the reporting period,
the Fed had lowered short-term interest rates by two full percentage points,
with the last cut coming on April 18, 2001--another surprise cut that spurred a
market rally. Taken together, these repeated cuts helped

                                        8
<PAGE>   10

create a more favorable environment for fixed-income investments.

    Still, the markets remain wary of what lies ahead--and recent developments
suggest an uncertain outlook. April brought a mixed bag of company announcements
and economic indicators. Layoffs continued and corporate earnings remained under
pressure from slowing economic activity, but we did hear news from a few
companies, such as IBM, that were optimistic about meeting their goals for 2001.
The federal government reported a modest rebound in industrial production for
March, but its index of leading indicators fell 0.2 percent in February and 0.3
percent in March. Durable-goods orders were up by 3 percent in March, though
most of the increase was attributable to a jump in demand for ships, cars,
military tanks, and other transportation equipment. Excluding the transportation
sector, durable-goods orders fell by 1.8 percent in March.

    Responding to the stronger performance of bonds in 2000, and the persistent
downtrend in stocks, investors began to move money into municipal bonds. Roughly
$58 billion of new municipal bonds were issued in the first quarter of 2001, up
7 percent from the fourth quarter of 2000 and up 44 percent from the first
quarter of 2000, when issuance was constrained by high interest rates.

    Municipal bond issuance in Pennsylvania increased by 153 percent in the
first quarter of 2001, compared to the same period a year ago. With volume of
$2.85 billion, Pennsylvania was the sixth largest issuer of municipal bonds in
the nation based on a state-by-state ranking. This spike in issuance has helped
to provide a wider range of opportunities to deploy the assets of the trust.

    Due to the trend toward lower market interest rates in general, the trust's
dividend was reduced briefly during the period, then restored to its previous
level. The portfolio continues to offer a competitive level of tax-exempt
income. The trust's monthly dividend of $0.065 per share translates to a
distribution rate of 5.75 percent based on the trust's closing market price on
April 30, 2001. Based on these figures, investors would have to have earned a
distribution rate of 9.24 percent on a taxable investment (for an investor in
the 37.8 percent combined federal and state income tax bracket) to match the
tax-exempt yield provided by the trust.

    For the six months ending April 30, 2001, the trust produced a total return
of 13.97 percent based on market price. This reflects an increase in market
price from $12.25 per share on October 31, 2000, to $13.57 per share on April
30, 2001. Of course, past performance is no guarantee of future results. As a
result of recent market activity, current performance may vary from the figures
shown. By comparison, the Lehman Brothers Pennsylvania Municipal Bond Index
produced a total return of 4.39 percent for the same period. The Lehman Brothers
Pennsylvania Municipal Bond Index is an unmanaged, broad-based statistical
composite of municipal bonds. Its returns do not include any sales charges or
fees that would be paid by an investor purchasing the securities it represents.
Such

                                        9
<PAGE>   11

costs would lower performance. It is not possible to invest directly in an
index. For additional performance results, please refer to the chart and
footnotes on page 4.

Q   WHAT STRATEGIES DID YOU FOLLOW
    IN MANAGING THE TRUST?

A   In terms of portfolio activity, the
last six months have been relatively calm. Much of the strategic work we
completed during the quarters prior
to this reporting period had put us in
the position of simply maintaining
the trust's emphasis on high-quality
investments, while fine-tuning the portfolio's maturity structure and sector
composition.

    In general, the overall credit quality of the portfolio increased over the
course of the reporting period, due in part to added investment in high-grade
bonds. When the market rallied, high-grade securities were generally the
strongest performers, reflecting the uncertainty investors faced in light of the
weakening economy and the stock market's poor performance. The demand for
high-quality fixed-income investments translated into higher prices within this
market segment and strong performance for this portion of the trust's portfolio.

    We did not commit to many new investments during the period, primarily
because of the declining interest rate environment and because we did not see a
good selection of attractive bond issues available in the marketplace. We were
able to make some very selective purchases of issues that provided attractive
income and relative value. Most often, these new investments were in longer-term
bonds that were available at steep discounts, as well as selected higher-coupon
bonds. We believe that these securities offered a good balance of risk and
reward.

    Other changes were made in
order to improve the call protection
of the portfolio, primarily by selling bonds that were scheduled to be refunded
or called in the next year or two. Rather than waiting for these issues to be
called out of the portfolio, we sold them at what we judged to be good prices
relative to their contribution to the portfolio. We also took advantage of
opportunities to sell
some longer-term discount bonds at attractive prices.

Q  HOW DID THESE STRATEGIES
   AFFECT THE COMPOSITION OF
   THE TRUST'S PORTFOLIO?

A   By the close of the reporting
period, the portfolio's allocation of securities rated A or better was 92.0
percent of total long-term investments. This includes the trust's increased
allocation in AAA rated securities (the highest rating category), which climbed
to 74.4 percent as of April 30, 2001, up from 72.9 percent at the start of the
period. The trust's allocation of BBB rated bonds stood at 8.0 percent, down by
0.4 percent.

    Throughout this time, the trust remained diversified over a broad range of
market sectors. Health-care bonds made up the largest portion of the trust, with
16.2 percent of long-term investments in this sector as of April 30, 2001, an
increase of 0.7 percent over the period. Transportation bonds represent

                                        10
<PAGE>   12

the trust's second largest holding, with 14.5 percent, up 1.7 percent.

    In general, the portfolio's composition reflects investment decisions that
were based on the relative value of the securities available in the marketplace,
given the conditions we encountered. It was our goal to maintain adequate
diversification and an attractive mix of current income and future potential.

Q  WHAT DO YOU SEE AHEAD
   FOR THE ECONOMY AND
   THE MUNICIPAL MARKET?

A   The actions of the Federal Reserve
Board signal that its keeping close tabs on the health of the economy-and that
it may be willing to take steps to help stave off a potential recession. We
believe the fixed-income markets may be expecting further rate cuts by the Fed,
but these expectations may already be fully reflected in current price levels.

    While rate cuts by the Fed may have the greatest impact on shorter-term
securities, the long end of the market may need to see evidence of deepening
economic weakness in order to rally significantly. If the economy levels off, we
may see the market stabilize and trade in a narrow range over the near term.

    Despite the turbulence and uncertainty of recent months, we expect potential
flows into municipal funds to remain strong as investors refocus on allocating
their assets into a prudent mix of stocks and bonds. We believe sustained demand
may help drive performance, and the portfolio should be positioned to benefit
from the market's supply-and-demand dynamics.

    We believe Pennsylvania's economic picture is favorable, with moderate
growth anticipated over the remainder of the year. Unemployment is moving
higher, following the national trend, but overall tax revenues appear stable.
Because of continued uncertainty in the health-care and airport sectors, we will
monitor these portions of the market very closely.

    Overall, we will maintain the trust's current emphasis on quality, while
looking for opportunities to enhance its yield and add relative value to the
portfolio.

                                        11
<PAGE>   13

GLOSSARY OF TERMS

A HELPFUL GUIDE TO SOME OF THE COMMON TERMS YOU'RE LIKELY TO SEE IN THIS REPORT
AND OTHER FINANCIAL PUBLICATIONS.

CREDIT RATING: An evaluation of a bond issuer's credit history and capability of
repaying debt obligations. Standard & Poor's Ratings Group and Moody's Investors
Service are two companies that assign credit ratings. Standard & Poor's ratings
range from a high of AAA to a low of D, while Moody's ratings range from a high
of Aaa to a low of C.

FEDERAL FUNDS RATE: The interest rate charged by one financial institution
lending federal funds to another. The Federal Reserve Board adjusts the federal
funds rate to affect the direction of interest rates.

FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank of the United States. Its policy-making
committee, called the Federal Open Market Committee, meets at least eight times
a year to establish monetary policy and monitor the economic pulse of the United
States.

GROSS DOMESTIC PRODUCT (GDP): The total market value of all finished goods and
services produced in a country in a given year.

MUNICIPAL BOND: A debt security issued by a state, municipality, or other state
or local government entity to finance capital expenditures of public projects,
such as the construction of highways, public works, or school buildings.
Interest on public-purpose municipal bonds is exempt from federal income taxes
and, in some states, from state and local income taxes.

NET ASSET VALUE (NAV): The value of a trust share, calculated by deducting a
trust's liabilities from the total assets applicable to common shareholders
in its portfolio and dividing this amount by the number of common shares
outstanding.

YIELD: The annual rate of return on an investment, expressed as a percentage.

                                        12
<PAGE>   14

                                               BY THE NUMBERS

YOUR TRUST'S INVESTMENTS

April 30, 2001 (Unaudited)
THE FOLLOWING PAGES DETAIL YOUR TRUST'S PORTFOLIO OF INVESTMENTS AT THE END OF
THE REPORTING PERIOD.

<TABLE>
<CAPTION>
PAR
AMOUNT                                                                        MARKET
(000)     DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>       <S>                                          <C>      <C>        <C>
          MUNICIPAL BONDS  99.5%
          PENNSYLVANIA  92.3%
$1,000    Allegheny Cnty, PA Arpt Auth Pittsburgh Intl
          Arpt Rfdg (FGIC Insd)....................... 5.750%   01/01/18   $  1,027,150
 1,000    Allegheny Cnty, PA Higher Edl Bldg Auth Rev
          Thiel College Ser A (ACA Insd).............. 5.375    11/15/29        890,200
 1,360    Allegheny Cnty, PA Hosp Dev Auth Rev Hlth
          Sys Ser A (MBIA Insd)....................... 6.500    11/15/30      1,476,851
   860    Allegheny Cnty, PA Indl Dev Auth Med Cent
          Rev Presbyterian Med Cent Rfdg (FHA Gtd).... 6.750    02/01/26        913,724
 2,000    Allegheny Cnty, PA Port Auth Spl Rev Trans
          (Prerefunded @ 03/01/09) (MBIA Insd)........ 6.000    03/01/24      2,230,580
 1,000    Allegheny Cnty, PA San Auth Swr Rev (MBIA
          Insd)....................................... 5.500    12/01/24      1,009,770
 2,600    Allentown, PA Area Hosp Auth Rev Sacred
          Heart Hosp Ser A Rfdg....................... 6.750    11/15/14      2,294,968
 2,000    Berks Cnty, PA Muni Auth Hosp Rev Reading
          Hosp & Med Cent Proj (Prerefunded @
          11/01/09) (FSA Insd)........................ 6.000    11/01/29      2,259,440
   925    Berks Cnty, PA Muni Auth Hosp Rev Reading
          Hosp & Med Cent Proj B (MBIA Insd).......... 6.000    10/01/14      1,010,128
 1,000    Canon McMillan Sch Dist PA Ser B (FGIC
          Insd)....................................... 5.500    12/01/29      1,007,730
 1,000    Carbon Cnty, PA Indl Dev Auth Panther Creek
          Partners Proj Rfdg (LOC: Paribas & Union Bk
          of CA Intl)................................. 6.650    05/01/10      1,021,360
 1,500    Chichester Sch Dist PA (FGIC Insd)..........   *      03/01/19        572,385
 1,000    Cumberland Cnty, PA Mun Auth Dickinson
          College Ser A (AMBAC Insd).................. 5.500    11/01/30      1,005,510
 2,000    Dauphin Cnty, PA Hosp Auth Rev Cmnty Genl
          Osteopathic Hosp Rfdg (Prerefunded @
          06/01/02)................................... 7.375    06/01/16      2,120,340
 2,000    Delaware Cnty, PA Auth Hlth Care Rev Mercy
          Hlth Corp Southeastn Ser A Rfdg (Connie Lee
          Insd)....................................... 5.125    11/15/12      2,032,320
 1,000    Delaware Cnty, PA Auth Hosp Rev Crozer
          Chester Med Cent............................ 6.000    12/15/09        980,310
</TABLE>

See Notes to Financial Statements

                                        13
<PAGE>   15

YOUR TRUST'S INVESTMENTS

April 30, 2001 (Unaudited)

<TABLE>
<CAPTION>
PAR
AMOUNT                                                                        MARKET
(000)     DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>       <S>                                          <C>      <C>        <C>
          PENNSYLVANIA (CONTINUED)
$1,400    Derry, PA Sch Dist Ser A Rfdg (MBIA Insd)... 6.550%   09/01/06   $  1,456,168
 3,505    Eastern York Sch Dist PA (MBIA Insd) (a).... 6.000    06/01/09      3,743,761
 2,000    Lehigh Cnty, PA Genl Purp Auth Cedar Crest
          College Rfdg................................ 6.700    04/01/26      2,044,960
 1,000    Lehigh Cnty, PA Indl Dev Auth Pollutn Ctl
          Rev PA Pwr & Lt Co Proj Ser A Rfdg (MBIA
          Insd)....................................... 6.400    11/01/21      1,049,680
 5,000    Lycoming Cnty, PA Auth College Rev PA
          College of Technology (AMBAC Insd).......... 5.375    07/01/30      4,977,700
 1,000    Mercer Cnty, PA (FGIC Insd) (b)............. 5.500    10/01/15      1,040,590
 1,000    Mifflin Cnty, PA Hosp Auth (Asset Gty
          Insd)....................................... 6.200    07/01/25      1,021,650
 1,000    Montgomery Cnty, PA Higher Edl & Hlth Auth
          Hosp Rev Abington Mem Hosp Ser A (AMBAC
          Insd)....................................... 5.125    06/01/24        946,880
 1,000    North Hills, PA Sch Dist (FGIC Insd)........ 5.500    07/15/24      1,024,220
 1,225    Northampton Twp, PA (FGIC Insd) (b)......... 5.375    05/15/15      1,268,230
 1,250    Penn Cambria Sch Dist PA Cap Apprec (FGIC
          Insd).......................................   *      08/15/24        331,312
 3,250    Pennsylvania Hsg Fin Agy Single Family Mtg
          Ser 40...................................... 6.900    04/01/25      3,412,077
 3,000    Pennsylvania Hsg Fin Agy Single Family Mtg
          Ser 41B Rfdg................................ 6.450    10/01/12      3,084,810
 1,000    Pennsylvania Hsg Fin Agy Single Family Mtg
          Ser 53A..................................... 6.050    04/01/18      1,032,840
 2,000    Pennsylvania Hsg Fin Agy Single Family Mtg
          Ser 54A Rfdg (FHA/VA Gtd)................... 6.050    10/01/16      2,079,240
 1,000    Pennsylvania Hsg Fin Agy Single Family Mtg
          Ser 56A..................................... 6.050    10/01/16      1,041,780
 1,500    Pennsylvania Intergvtl Coop Auth Spl Tax Rev
          Philadelphia Fdg Pgm Rfdg (FGIC Insd)....... 5.500    06/15/20      1,509,540
 4,275    Pennsylvania St Ctfs Partn Ser A Rfdg (AMBAC
          Insd)....................................... 5.250    07/01/10      4,374,992
 1,000    Pennsylvania St Higher Edl Fac Auth College
          & Univ Rev Bryn Mawr College (MBIA Insd).... 5.625    12/01/17      1,030,710
   895    Pennsylvania St Higher Edl Facs Rev Ser A
          (MBIA Insd)................................. 6.625    08/15/09        946,606
 4,300    Pennsylvania St Tpk Commn Oil Franchise Tax
          Rev Ser A (AMBAC Insd)...................... 4.750    12/01/27      3,841,018
 2,000    Pennsylvania St Tpk Commn Tpk Rev Ser R
          (AMBAC Insd)................................ 5.000    12/01/26      1,891,500
 1,075    Philadelphia, PA (FSA Insd)................. 5.000    03/15/28      1,005,512
 2,000    Philadelphia, PA Auth for Indl Dev Rev
          Rfdg........................................ 5.500    07/01/10      2,056,380
</TABLE>

                                               See Notes to Financial Statements

                                        14
<PAGE>   16

YOUR TRUST'S INVESTMENTS

April 30, 2001 (Unaudited)

<TABLE>
<CAPTION>
PAR
AMOUNT                                                                        MARKET
(000)     DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>       <S>                                          <C>      <C>        <C>
          PENNSYLVANIA (CONTINUED)
$1,000    Philadelphia, PA Auth Indl Dev Amer Clg Of
          Physicians.................................. 5.500%   06/15/27   $    995,810
 1,500    Philadelphia, PA Gas Wks Rev Ser 14 Rfdg
          (FSA Insd).................................. 6.250    07/01/08      1,605,345
 1,000    Philadelphia, PA Hosp & Higher Edl Fac Auth
          Hosp Rev PA Hosp Rfdg....................... 6.250    07/01/06      1,096,980
   895    Philadelphia, PA Hosp & Higher Edl Fac Auth
          Rev Cmnty College Ser A (MBIA Insd)......... 6.050    05/01/08        971,227
 1,455    Philadelphia, PA Hosp & Higher Edl Fac Auth
          Rev Cmnty College Ser B Rfdg (MBIA Insd).... 6.500    05/01/09      1,648,224
 2,000    Philadelphia, PA Sch Dist Ser B (AMBAC
          Insd)....................................... 5.500    09/01/18      2,025,960
 3,000    Philadelphia, PA Ser A Rfdg (FGIC Insd)..... 6.250    11/15/04      3,238,770
 5,000    Philadelphia, PA Wtr & Wastewtr Rev Rfdg
          (MBIA Insd)................................. 6.750    08/01/03      5,331,350
 3,675    Philadelphia, PA Wtr & Wastewtr Rev Rfdg
          (AMBAC Insd)................................ 5.500    06/15/07      3,923,320
 2,000    Philadelphia, PA Wtr & Wastewtr Rev Ser A
          (AMBAC Insd)................................ 5.125    08/01/27      1,912,860
 4,500    Pittsburgh & Allegheny Cnty, PA Pub Aud Auth
          Regl Asset Dist Sales Tax (AMBAC Insd)...... 5.000    02/01/24      4,268,295
 2,000    Pittsburgh, PA Ser A (FGIC Insd)............ 5.750    09/01/22      2,065,980
 1,000    Pittsburgh, PA Urban Redev Auth Mtg Rev Ser
          C Rfdg...................................... 6.500    10/01/23      1,030,190
 1,750    Pittsburgh, PA Urban Redev Auth Mtg Rev Ser
          C Rfdg...................................... 5.700    04/01/30      1,755,653
 2,000    Southeastern PA Trans Auth PA Spl Rev Ser A
          (FGIC Insd)................................. 4.750    03/01/24      1,787,740
 1,000    State Pub Sch Bldg Auth PA Delaware Cnty
          College Proj (MBIA Insd).................... 5.750    10/01/16      1,053,830
 1,500    Washington Cnty, PA Auth Rev Cap Fdg Cap
          Proj & Equip Pgm (AMBAC Insd)............... 6.150    12/01/29      1,668,705
                                                                           ------------
                                                                            104,445,161
                                                                           ------------
          GUAM  0.5%
   500    Guam Arpt Auth Rev Ser B.................... 6.700    10/01/23        519,795
                                                                           ------------
</TABLE>

See Notes to Financial Statements

                                        15
<PAGE>   17

YOUR TRUST'S INVESTMENTS

April 30, 2001 (Unaudited)

<TABLE>
<CAPTION>
PAR
AMOUNT                                                                        MARKET
(000)     DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>       <S>                                          <C>      <C>        <C>

          PUERTO RICO  5.8%
$2,000    Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev
          Ser W Rfdg.................................. 5.500%   07/01/17   $  2,029,180
 4,000    Puerto Rico Comwlth Hwy & Tran Auth Hwy Rev
          Ser Y Rfdg (FSA Insd)....................... 6.250    07/01/21      4,566,760
                                                                           ------------
                                                                              6,595,940
                                                                           ------------
          U.S. VIRGIN ISLANDS  0.9%
 1,000    Virgin Islands Pub Fin Auth Rev Gross Rcpts
          Taxes Nt Ser A.............................. 6.375    10/01/19      1,063,340
                                                                           ------------

TOTAL LONG-TERM INVESTMENTS  99.5%
  (Cost $106,625,632)...................................................    112,624,236
SHORT-TERM INVESTMENTS  1.1%
  (Cost $1,200,000).....................................................      1,200,000
                                                                           ------------

TOTAL INVESTMENTS  100.6%
  (Cost $107,825,632)...................................................    113,824,236
LIABILITIES IN EXCESS OF OTHER ASSETS  (0.6%)...........................       (663,492)
                                                                           ------------
NET ASSETS  100.0%......................................................   $113,160,744
                                                                           ============
</TABLE>

 * Zero coupon bond

(a) Assets segregated as collateral for when-issued or delayed delivery purchase
    commitments.

(b) Securities purchased on a when-issued or delayed delivery basis.

ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
Asset Gty--Asset Guaranty Insurance Co.
Connie Lee--Connie Lee Insurance Co.
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FHA/VA--Federal Housing Administration/Department of Veterans Affairs
FSA--Financial Security Assurance Inc.
LOC--Letter of Credit
MBIA--Municipal Bond Investors Assurance Corp.

                                               See Notes to Financial Statements

                                        16
<PAGE>   18

FINANCIAL STATEMENTS
Statement of Assets and Liabilities
April 30, 2001 (Unaudited)

<TABLE>
<S>                                                             <C>
ASSETS:
Total Investments (Cost $107,825,632).......................    $113,824,236
Cash........................................................          17,492
Interest Receivable.........................................       1,911,343
Other.......................................................           1,869
                                                                ------------
    Total Assets............................................     115,754,940
                                                                ------------
LIABILITIES:
Payables:
  Investments Purchased.....................................       2,326,415
  Investment Advisory Fee...................................          60,845
  Income Distributions--Preferred Shares....................          23,734
  Administrative Fee........................................          18,722
  Affiliates................................................           5,018
Trustees' Deferred Compensation and Retirement Plans........         123,696
Accrued Expenses............................................          35,766
                                                                ------------
    Total Liabilities.......................................       2,594,196
                                                                ------------
NET ASSETS..................................................    $113,160,744
                                                                ============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
  shares, 1,800 issued with liquidation preference of
  $25,000 per share)........................................    $ 45,000,000
                                                                ------------
Common Shares ($.01 par value with an unlimited number of
  shares authorized, 4,468,924 shares issued and
  outstanding)..............................................          44,689
Paid in Surplus.............................................      65,577,874
Net Unrealized Appreciation.................................       5,998,604
Accumulated Undistributed Net Investment Income.............         514,618
Accumulated Net Realized Loss...............................      (3,975,041)
                                                                ------------
    Net Assets Applicable to Common Shares..................      68,160,744
                                                                ------------
NET ASSETS..................................................    $113,160,744
                                                                ============
NET ASSET VALUE PER COMMON SHARE ($68,160,744 divided by
  4,468,924 shares outstanding).............................    $      15.25
                                                                ============
</TABLE>

See Notes to Financial Statements

                                        17
<PAGE>   19

Statement of Operations
For the Six Months Ended April 30, 2001 (Unaudited)

<TABLE>
<S>                                                             <C>
INVESTMENT INCOME:
Interest....................................................    $3,475,219
                                                                ----------
EXPENSES:
Investment Advisory Fee.....................................       367,245
Administrative Fee..........................................       112,999
Preferred Share Maintenance.................................        63,770
Trustees' Fees and Related Expenses.........................        14,921
Legal.......................................................        10,937
Custody.....................................................         4,012
Other.......................................................        62,223
                                                                ----------
    Total Expenses..........................................       636,107
                                                                ----------
NET INVESTMENT INCOME.......................................    $2,839,112
                                                                ==========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain...........................................    $  772,166
                                                                ----------
Unrealized Appreciation/Depreciation:
  Beginning of the Period...................................     5,390,750
  End of the Period.........................................     5,998,604
                                                                ----------
Net Unrealized Appreciation During the Period...............       607,854
                                                                ----------
NET REALIZED AND UNREALIZED GAIN............................    $1,380,020
                                                                ==========
NET INCREASE IN NET ASSETS FROM OPERATIONS..................    $4,219,132
                                                                ==========
</TABLE>

                                               See Notes to Financial Statements

                                        18
<PAGE>   20

Statement of Changes in Net Assets
For the Six Months Ended April 30, 2001 and the Year Ended October 31, 2000
(Unaudited)

<TABLE>
<CAPTION>
                                                    SIX MONTHS ENDED       YEAR ENDED
                                                     APRIL 30, 2001     OCTOBER 31, 2000
                                                    ------------------------------------
<S>                                                 <C>                 <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income..............................   $  2,839,112        $  5,117,037
Net Realized Gain..................................        772,166              70,018
Net Unrealized Appreciation During the Period......        607,854           2,268,712
                                                      ------------        ------------
Change in Net Assets from Operations...............      4,219,132           7,455,767
                                                      ------------        ------------
Distributions from Net Investment Income:
  Common Shares....................................     (1,698,051)         (3,485,449)
  Preferred Shares.................................       (905,755)         (1,864,096)
                                                      ------------        ------------
Total Distributions................................     (2,603,806)         (5,349,545)
                                                      ------------        ------------

NET CHANGE IN NET ASSETS FROM INVESTMENT
  ACTIVITIES.......................................      1,615,326           2,106,222

NET ASSETS:
Beginning of the Period............................    111,545,418         109,439,196
                                                      ------------        ------------
End of the Period (Including accumulated
  undistributed net investment income of $514,618
  and $279,312, respectively)......................   $113,160,744        $111,545,418
                                                      ============        ============
</TABLE>

See Notes to Financial Statements

                                        19
<PAGE>   21

Financial Highlights
(Unaudited)
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

<TABLE>
<CAPTION>
                                                            SIX
                                                          MONTHS
                                                           ENDED
                                                         APRIL 30,    ------------------
                                                           2001        2000       1999
                                                         -------------------------------
<S>                                                      <C>          <C>       <C>
NET ASSET VALUE, BEGINNING OF THE PERIOD (A).........     $14.89      $14.42    $  15.98
                                                          ------      ------    --------
  Net Investment Income..............................        .63        1.15        1.12
  Net Realized and Unrealized Gain/Loss..............        .31         .52       (1.57)
                                                          ------      ------    --------
Total from Investment Operations.....................        .94        1.67        (.45)
                                                          ------      ------    --------
Less:
  Distributions from Net Investment Income:
    Paid to Common Shareholders......................        .38         .78         .78
    Common Share Equivalent of Distributions Paid to
      Preferred Shareholders.........................        .20         .42         .33
  Distributions from Net Realized Gain:
    Paid to Common Shareholders......................        -0-         -0-         -0-
    Common Share Equivalent of Distributions Paid to
      Preferred Shareholders.........................        -0-         -0-         -0-
                                                          ------      ------    --------
Total Distributions..................................        .58        1.20        1.11
                                                          ------      ------    --------
NET ASSET VALUE, END OF THE PERIOD...................     $15.25      $14.89    $  14.42
                                                          ======      ======    ========

Market Price Per Share at End of the Period..........     $13.57      $12.25    $12.4375
Total Investment Return at Market Price (b)..........     13.97%**     4.82%     -11.99%
Total Return at Net Asset Value (c)..................      4.97%**     8.97%      -5.09%
Net Assets at End of the Period (In millions)........     $113.2      $111.5    $  109.4
Ratio of Expenses to Average Net Assets Applicable to
  Common Shares*.....................................      1.86%       1.92%       1.87%
Ratio of Net Investment Income to Average Net Assets
  Applicable to Common Shares (d)....................      5.66%       5.04%       5.13%
Portfolio Turnover...................................        11%**       21%         28%
 * Ratio of Expenses to Average Net Assets Including
   Preferred Shares..................................      1.13%       1.13%       1.13%
** Non-annualized
</TABLE>

(a) Net Asset Value at April 30, 1993, is adjusted for common and preferred
    share offering costs of $.313 per common share.

(b) Total return based on market price assumes an investment at the market price
    at the beginning of the period indicated, reinvestment of all distributions
    for the period in accordance with the Trust's dividend reinvestment plan,
    and sale of all shares at the closing common stock price at the end of the
    period indicated.

(c) Total return based on net asset value (NAV) assumes an investment at the
    beginning of the period indicated, reinvestment of all distributions for the
    period, and sale of all shares at the end of the period, all at NAV.

(d) Net Investment Income is adjusted for the common share equivalent of
    distributions paid to preferred shareholders.

                                        20
<PAGE>   22

<TABLE>
<CAPTION>
                                                          APRIL 30, 1993
                                                          (COMMENCEMENT
YEAR ENDED OCTOBER 31                                     OF INVESTMENT
------------------------------------------------------    OPERATIONS) TO
         1998      1997      1996      1995     1994     OCTOBER 31, 1993
-------------------------------------------------------------------------
<S>    <C>        <C>       <C>       <C>      <C>       <C>
       $  15.48   $ 14.83   $ 14.68   $12.57   $ 15.67       $ 14.69
       --------   -------   -------   ------   -------       -------
           1.13      1.13      1.13     1.14      1.14           .43
            .49       .62       .13     2.19     (3.13)          .90
       --------   -------   -------   ------   -------       -------
           1.62      1.75      1.26     3.33     (1.99)         1.33
       --------   -------   -------   ------   -------       -------
            .77       .75       .75      .82       .82           .28
            .35       .35       .36      .40       .28           .07
            -0-       -0-       -0-      -0-       .01           -0-
            -0-       -0-       -0-      -0-       -0-           -0-
       --------   -------   -------   ------   -------       -------
           1.12      1.10      1.11     1.22      1.11           .35
       --------   -------   -------   ------   -------       -------
       $  15.98   $ 15.48   $ 14.83   $14.68   $ 12.57       $ 15.67
       ========   =======   =======   ======   =======       =======

       $14.9375   $13.625   $12.625   $12.50   $10.375       $14.875
         15.59%    14.26%     7.17%   28.60%   -25.61%         1.00%**
          8.36%     9.70%     6.33%   23.90%   -14.91%         6.33%**
       $  116.4   $ 114.2   $ 111.3   $110.6   $ 101.2       $ 115.0
          1.83%     1.91%     1.97%    2.03%     1.98%         1.55%
          4.93%     5.15%     5.24%    5.35%     6.09%         4.75%
             7%        9%       27%      43%       53%            9%**
          1.12%     1.14%     1.17%    1.17%     1.16%         1.14%
</TABLE>

See Notes to Financial Statements

                                        21
<PAGE>   23

NOTES TO
FINANCIAL STATEMENTS

April 30, 2001 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen Pennsylvania Value Municipal Income Trust (the "Trust") is registered
as a non-diversified, closed-end management investment company under the
Investment Company Act of 1940, as amended. The Trust's investment objective is
to provide a high level of current income exempt from federal and Pennsylvania
income taxes and, where possible under local law, local income and personal
property taxes, consistent with preservation of capital. The Trust will invest
substantially all of its assets in Pennsylvania municipal securities rated
investment grade at the time of investment. The Trust commenced investment
operations on April 30, 1993.

    The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services are valued at fair value
using procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of 60 days or less are valued at amortized
cost, which approximates market value.

B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when-issued or delayed delivery
purchase commitments until payment is made.

C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and original issue discount is accreted over the expected
life of each applicable security.

                                        22
<PAGE>   24

NOTES TO
FINANCIAL STATEMENTS

April 30, 2001 (Unaudited)

    In November 2000, the American Institute of Certified Public Accountants
(AICPA) issued a revised version of the AICPA Audit and Accounting Guide for
Investment Companies (the "Guide"). The revised version of the Guide is
effective for annual financial statements issued for fiscal years beginning
after December 15, 2000 and will require investment companies to amortize
premiums and accrete discounts on fixed income securities. The Trust currently
does not accrete market discount on fixed income securities. Upon adoption, the
Trust will be required to record a cumulative effect adjustment to reflect the
accretion of market discount. The adjustment will increase accumulated
undistributed net investment income and reduce unrealized appreciation on
securities and therefore will not impact total net assets. As of April 30, 2001,
the cumulative effect adjustment to reflect the accretion of market discount
would be $147,300.

D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.

    The Trust intends to utilize provisions of the federal income tax laws which
allow it to carry a realized capital loss forward for eight years following the
year of the loss and offset these losses against any future realized capital
gains. At October 31, 2000, the Trust had an accumulated capital loss
carryforward for tax purposes of $4,747,207, which will expire between October
31, 2002 and October 31, 2007.

    At April 30, 2001, for federal income tax purposes the cost of long-and
short-term investments is $107,825,632, the aggregate gross unrealized
appreciation is $6,552,135 and the aggregate gross unrealized depreciation is
$553,531, resulting in net unrealized appreciation on long- and short-term
investments of $5,998,604.

E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.

2. INVESTMENT ADVISORY AGREEMENT AND
OTHER TRANSACTIONS WITH AFFILIATES

Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
Investment Advisory Corp. (the "Adviser") will provide investment advice and
facilities to the Trust for an annual fee payable monthly of .60% of the average
daily net assets of the Trust. Effective May 17, 2001, this fee was reduced from

                                        23
<PAGE>   25

NOTES TO
FINANCIAL STATEMENTS

April 30, 2001 (Unaudited)

 .65% to .60% of the average daily net assets of the Trust. In addition, the
Trust will pay a monthly administrative fee to Van Kampen Investments Inc. or
its affiliates (collectively "Van Kampen"), the Trust's Administrator, at an
annual rate of .20% of the average daily net assets of the Trust. The
administrative services provided by the Administrator include record keeping and
reporting responsibilities with respect to the Trust's portfolio and preferred
shares and providing certain services to shareholders.

    For the six months ended April 30, 2001, the Trust recognized expenses of
approximately $1,500 representing legal services provided by Skadden, Arps,
Slate, Meagher, & Flom (Illinois), counsel to the Trust, of which a trustee of
the Trust is an affiliated person.

    Under separate Accounting Services and Legal Services agreements, the
Adviser provides accounting and legal services to the Trust. The Adviser
allocates the cost of such services to each trust. For the six months ended
April 30, 2001, the Trust recognized expenses of approximately $16,300
representing Van Kampen's cost of providing accounting and legal services to the
Trust, which are reported as part of other and legal expenses, respectively, in
the Statement of Operations.

    Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.

    The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable for a ten-year period
and are based upon each trustee's years of service to the Trust. The maximum
annual benefit per trustee under the plan is $2,500.

3. INVESTMENT TRANSACTIONS

During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $12,684,752 and $11,979,157,
respectively.

4. PREFERRED SHARES

The Trust has outstanding 1,800 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is currently reset every seven days through an
auction process. The rate in effect on April 30, 2001, was 3.850%. During the
six months ended April 30, 2001, the rates ranged from 3.300% to 6.570%.

    The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.

                                        24
<PAGE>   26

NOTES TO
FINANCIAL STATEMENTS

April 30, 2001 (Unaudited)

    The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.

                                        25
<PAGE>   27

DIVIDEND REINVESTMENT PLAN

    The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.

    If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.

HOW TO PARTICIPATE

    If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contract
your nominee to see if it would participate in the Plan on your behalf. If you
wish to participate in the Plan, but your brokerage firm, bank or nominee is
unable to participate on your behalf, you should request that your shares be
re-registered in your own name which will enable your participation in the Plan.

HOW THE PLAN WORKS

    Participants in the Plan will receive the equivalent in Common Shares valued
on the valuation date, generally at the lower of market price or net asset
value, except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in

                                        26
<PAGE>   28

the acquisition of fewer Common Shares than if the dividend or distribution had
been paid in Common Shares issued by the Trust. All reinvestments are in full
and fractional Common Shares and are carried to three decimal places.

    Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
changes sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.

COSTS OF THE PLAN

    The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described below.

TAX IMPLICATIONS

    You will receive tax information annually for your personal records and to
help you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.

RIGHT TO WITHDRAW

    Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200. If you withdraw, you will receive, without charge, a share
certificate issued in your name for all full Common Shares credited to your
account under the Plan and a cash payment will be made for any fractional Common
Share credited to your account under the Plan. You may again elect to
participate in the Plan at any time by calling 1-800-341-2929 or writing to the
Trust at:

       Van Kampen Funds Inc.
        Attn: Closed-End Funds
         2800 Post Oak Blvd.
          Houston, TX 77056

                                        27
<PAGE>   29

TRUST OFFICERS AND IMPORTANT ADDRESSES
VAN KAMPEN PENNSYLVANIA VALUE MUNICIPAL INCOME TRUST

BOARD OF TRUSTEES

DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
THEODORE A. MYERS
RICHARD F. POWERS, III* - Chairman
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*

OFFICERS

RICHARD F. POWERS, III*
   President

STEPHEN L. BOYD*
   Executive Vice President and
   Chief Investment Officer

A. THOMAS SMITH III*
   Vice President and Secretary

JOHN L. SULLIVAN*
   Vice President, Treasurer and
   Chief Financial Officer

RICHARD A. CICCARONE*
JOHN R. REYNOLDSON*
MICHAEL H. SANTO*
JOHN H. ZIMMERMANN, III*
   Vice Presidents

INVESTMENT ADVISER

VAN KAMPEN INVESTMENT ADVISORY CORP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, Illinois 60181-5555

CUSTODIAN AND TRANSFER AGENT

STATE STREET BANK AND TRUST COMPANY
c/o EquiServe
P.O. Box 43011
Providence, Rhode Island 02940-3011

LEGAL COUNSEL

SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606

INDEPENDENT AUDITORS

DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601

*   "Interested persons" of the Trust, as defined in the Investment Company Act
    of 1940,
  as amended.

    Copyright (C) 2001 Van Kampen Funds Inc. All rights reserved.

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