Thanks for the detailed reply, baldietax.
I had previously identified in the Tax Summary and the Dividends and Interest Detail pages (that accompanied our 1099-DIV and 1099-INT forms) the tax exempt-interest dividends that were Non-taxable in our State. Guided by your reply, I found the amount of U.S. Government Interest Reported as Dividends. These were small amounts from seven different funds whose focus is not on U.S. Gov. bonds.
Although the U.S. Gov. Interest was not labeled "tax exempt", when added to the "tax exempt-interest dividends", the total equaled the amount on line 2 of our State Interest Worksheet.
ISSUE SOLVED!
