CMA
CMA NEW YORK
MUNICIPAL MONEY FUND
Annual Report
March 31, 1994
Merrill Lynch
BULL LOGO
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
<PAGE>
This report is not authorized for use as an offer
of sale or a solicitation of an offer to buy shares
of the Fund unless accompanied or preceded by the
Fund's current prospectus. Past performance results
shown in this report should not be considered a rep-
resentation of future performance, which will fluc-
tuate. The Fund seeks to maintain a consistent $1.00
net asset value per share, although this cannot be
assured. An investment in the Fund is neither insured
nor guaranteed by the US Government.
CMA New York
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1994, CMA New York Municipal Money
Fund paid shareholders a net annualized yield of 1.79%*. As of
March 31, 1994, the Fund's 7-day yield was 1.77%.
The Environment
Inflationary expectations changed sharply during the March quar-
ter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion of the eco-
nomy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest 25
basis point (0.25%) increase in short-term interest rates. At the
March 22 meeting of the Federal Open Market Committee, the Fed-
eral Reserve Board again raised the Federal Funds rate by 25
basis points, and also announced the increase.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second increase in the Federal Funds rate was less of a surprise,
investors remained concerned that interest rates would trend
upward sharply. As a result, stock and bond prices continued to
decline through the end of March. The volatility in the US
capital markets was mirrored in international markets. Political
and economic developments, along with concerns of heightened
global inflationary pressures, led to a sell-off in most capital
markets, especially the emerging markets that had appreciated
strongly in 1993.
<PAGE>
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating eco-
nomy. At this time, there is little evidence that the rate of
inflation will increase rapidly. Therefore, although the secular
long-term trend toward lower interest rates may be over, it is
not yet certain whether the pace of economic activity will ac-
celerate to the point where significant Federal Reserve Board
tightening will be necessary to contain inflation.
Investment Outlook and Strategy
During the period ended March 31, 1994, the State of New York's
economy recovered somewhat from a five-year slump with positive
trends in new business expansion and tourism. During this period,
Standard & Poor's Corp. boosted its outlook on $5.2 billion of
New York State debt to positive from stable, citing the State's
improving financial condition. The New York State comptroller
also announced that the State will finish its fiscal year ended
March 31, 1994 with a $300 million surplus as a result of tax
revenue growth, spending reductions and a slow-down in the in-
crease of Medicaid costs.
New York does face challenges with a lagging manufacturing in-
dustry, continuing defense and military cuts, corporate restruc-
turing and layoffs related to new technologies. Governor Cuomo's
proposed $62.6 billion budget would increase general fund spend-
ing by 3.8% to $33.4 billion. Governor Cuomo called for a re-
duction in the State's surcharge on corporate taxes to 12.5%
from 15% halfway through the next fiscal year and to 10% in 1996.
The Governor's budget plan also brings an end to the State's
short-term spring borrowing, which will not come to market for
the first time since 1958.
Additionally, Moody's Investors Service, Inc. confirmed New York
City's Baa1 rating on March 21, 1994. Under Mayor Giuliani, the
City continues to face difficulties since the recent recession
and a slow recovery have weakened the City's economic base, limit-
ing growth in its major revenue sources while contributing to in-
creased services demand. Unemployment rates have remained at
or near double-digit levels over the past year, and total em-
ployment has declined significantly since its peak in 1989.
<PAGE>
The new issuance of short-term New York debt totaled approximately
$4.7 billion for the period ended March 31, 1994, an increase from
the $2.6 billion issued in the prior six-month period. CMA New York
Municipal Money Fund's average portfolio maturity has ranged from
43 days to 87 days and currently stands at 62 days in order to seek
to take advantage of possibly higher yields in the upcoming months
resulting from increasing supply and the possibility of additional
Federal Reserve Board intervention.
We continue to work very closely with our credit analysts to main-
tain the highest quality portfolio possible. Diversification and
credit quality remain of paramount importance to the Fund, and we
will continue to closely monitor the everchanging marketplace.
We thank you for your continued support of CMA New York Municipal
Money Fund, and we look forward to serving your investment needs
in the months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
April 29, 1994
Portfolio Abbreviations for CMA New York Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
DDN Daily Demand Notes
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
S/F Single-Family
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York-- $ 29,117 Albany County, New York, 2.90% due 6/15/1994 $ 29,117
98.9% 3,800 Babylon, New York, IDA, Resource Recovery Revenue Bonds, VRDN, AMT, 3.05%
due 12/01/2024 (a) 3,800
10,295 Brentwood, New York, Unified Free School District, TAN, 3.25% due 6/30/1994 10,301
1,715 Brookhaven, New York, Public Improvement Revenue Refunding Bonds, 2.70%
due 6/15/1994 1,715
7,800 Buffalo, New York, RAN, Series A, 2.75% due 7/14/1994 7,808
7,200 Eagle Tax Exempt Trust, New York, VRDN, Series 1994-C4, 2.24% due
8/01/2003 (a) 7,200
280 Fallsburg, New York, Public Improvement Refunding Bonds, Series B, 2.60%
due 4/01/1994 280
2,100 Great Neck, New York, Water and Sewer Authority Revenue Refunding Bonds,
VRDN, Series A, 2% due 1/01/2020 (a) 2,100
32,500 Metropolitan Transit Authority, New York, Commuter Facilities Revenue
Bonds, VRDN, 2.05% due 7/01/2021 (a) 32,500
Monroe County, New York:
11,000 BAN, 3% due 6/10/1994 11,009
23,400 RAN, 3% due 4/29/1994 23,405
20,000 RAN, 3.25% due 4/29/1994 20,009
1,000 Monroe County, New York, Public Improvement Bonds, 7% due 6/01/1994 1,007
1,265 Municipal Assistance Corporation, City of New York, New York, Series 68,
6.60% due 7/01/1994 1,277
Nassau County, New York, BAN:
15,000 3.25% due 8/15/1994 15,024
2,700 Series A, 3.25% due 8/15/1994 2,702
1,100 Nassau County, New York, IDA, Civic Facility Revenue Bonds (Cold Spring Harbor
Lab Project), DDN, 3.25% due 7/01/2019 (a) 1,100
2,200 New York City, New York, Cultural Resource Revenue Bonds (Museum of
Broadcasting), VRDN, 2.30% due 5/01/2014 (a) 2,200
New York City, New York, GO, DDN (a):
1,900 Series B, 2.60% due 10/01/2020 1,900
300 Series B, 2.60% due 10/01/2021 300
400 Series D, 2.85% due 2/01/2021 400
New York City, New York, Housing Development Corporation, Special
Obligation Revenue Bonds, VRDN, Series A (a):
14,000 (East 96th Street Project), 2.10% due 8/01/2015 14,000
2,000 (Upper Fifth Avenue Project), 1.80% due 1/01/2016 2,000
<PAGE> 4,400 New York City, New York, IDA, Civic Facilities Revenue Bonds (Children's
Oncology Society/Ronald McDonald House), VRDN, 1.90% due 5/01/2021 (a) 4,400
New York City, New York, IDA, IDR, AMT, VRDN (a):
1,400 Composite XXV, Series E, 2.10% due 11/01/2010 1,400
1,950 Series K, 2.10% due 11/01/2010 1,950
3,000 New York City, New York, IDA, Revenue Bonds (Japan Airlines Co. Ltd.), AMT,
VRDN, 2.90% due 11/01/2015 (a) 3,000
New York City, New York, Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds, BAN, Series A:
24,275 2.75% due 4/15/1994 24,274
19,815 3.75% due 12/15/1994 19,939
75,530 New York City, New York, RAN, Series B, 3.50% due 6/30/1994 75,668
11,990 New York City, New York, TAN, CP, Series A, 3.125% due 4/08/1994 11,992
New York City, New York, Trust Cultural Resource Revenue Refunding
Bonds, VRDN (a):
9,000 (American Natural Museum), Series A, 2.10% due 4/01/2021 9,000
1,000 (Soloman R. Guggenheim), Series B, 3.25% due 12/01/2015 1,000
</TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York New York City, New York, VRDN (a):
(continued) $ 600 Series B, 2.60% due 10/01/2022 $ 600
300 Subseries B-2, 2.60% due 8/15/2019 300
250 New York State Dormitory Authority Revenue Bonds (College Entrance Exam
Board), 2.80% due 7/01/1994 250
New York State Dormitory Authority Revenue Bonds (Memorial Sloan Kettering
Cancer Center), CP:
14,900 Series A, 2.75% due 6/14/1994 14,900
5,000 Series A, 2.75% due 7/15/1994 5,000
5,400 Series B, 2.40% due 5/16/1994 5,400
19,300 Series B, 2.75% due 6/14/1994 19,300
18,200 Series C, 2.75% due 6/17/1994 18,200
1,600 Series D, 2.35% due 5/16/1994 1,600
10,600 Series D, 2.75% due 6/14/1994 10,600
1,365 Series D, 2.75% due 6/17/1994 1,365
New York State Dormitory Authority Revenue Bonds:
8,000 (Metropolitan Museum of Art), VRDN, Series A, 1.90% due 7/01/2015 (a) 8,000
300 (Rochester Institute), 2.70% due 7/01/1994 300
16,815 (Saint Vincent's Hospital), 9.50% due 7/01/1994 (b) 17,435
8,000 New York State Energy Research and Development Authority, PCR (New York
State Electric and Gas Corp.), 2.80% due 12/01/1994 8,003
29,900 New York State Energy Research and Development Authority, PCR (Niagara
Mohawk Corporation Project), AMT, DDN, Series B, 2.75% due 7/01/2027 (a) 29,900
New York State Energy Research and Development Authority, PCR, Series A:
7,000 (Central Hudson Gas and Electric Company), VRDN, AMT, 1.90% due
<PAGE> 6/01/2027 (a) 7,000
8,735 (Lilco Project), 3% due 3/01/1995 8,735
600 (Niagara Mohawk Corporation Project), DDN, 3.25% due 3/01/2027 (a) 600
700 (Niagara Mohawk Power), VRDN, AMT, 2.75% due 12/01/2023 (a) 700
5,000 New York State Energy Research and Development Authority Revenue Bonds (Long
Island Lighting Co.), AMT, Series B, 2.85% due 11/01/1994 5,000
New York State Environmental Facilities Corporation, Solid Waste Disposal
Revenue Bonds (General Electric Company Project), AMT, Series A:
3,300 2.65% due 6/17/1994 3,300
7,800 2.55% due 7/22/1994 7,800
12,000 New York State Floating Rate Treasury Certificates (Societe Generale),
VRDN, Series A, 2.30% due 3/02/2003 (a) 12,000
New York State HFA Revenue Bonds, VRDN (a):
18,000 (Normandie Court I), 2.30% due 5/15/2015 18,000
15,350 (Normandie Court II), AMT, Series A, 2.30% due 11/01/2002 15,350
New York State Job Development Authority (a):
1,950 DDN, AMT, Series A, 3.10% due 3/01/2003 1,950
285 DDN, AMT, Series B, 3.10% due 3/01/2003 285
125 VRDN, 1984 Series C, 2.45% due 3/01/1999 125
1,365 VRDN, 1984 Series E, 2.45% due 3/01/1999 1,365
215 VRDN, 1984 Series F, 2.45% due 3/01/1999 215
15 VRDN, 1984 Series G, 2.45% due 3/01/1999 15
340 VRDN, Series A, 2.50% due 3/01/2000 340
2,585 VRDN, Series B, 2.50% due 3/01/2000 2,585
5,080 VRDN, Series C, 2.50% due 3/01/2000 5,080
3,930 VRDN, Series D, 2.50% due 3/01/2000 3,930
</TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York New York State Local Government Assistance Corporation, VRDN (a):
(concluded) $ 26,200 Series A, 2% due 4/01/2022 $ 26,200
16,000 Series B, 2.30% due 4/26/1994 16,000
New York State Medical Care Facilities, Finance Agency Revenue Bonds, VRDN (a):
6,400 (Children's Hospital of Buffalo), Series A, 2.10% due 11/01/2005 6,400
8,500 (Pooled Equipment Loan Program), 2% due 11/01/2015 8,500
6,285 New York State Mortgage Agency Revenue Bonds, Series 31C, 2.80% due
6/01/1994 6,285
31,345 New York State Power Authority, Revenue and General Purpose Bonds
(Junior Lien), 2.75% due 9/01/1994 31,345
500 Niagara Falls, New York, Revenue Refunding Bonds, Series A, 2.90% due
6/15/1994 500
<PAGE> 365 North Greenbush, New York, IDA, IDR, Refunding (Rensselear Polytechnical
Institute), 2.75% due 4/01/1994 365
625 North Hempstead, New York, RAN, 3% due 5/27/1994 626
Port Authority, New York and New Jersey, CP:
6,500 2.70% due 6/10/1994 6,500
23,200 2.70% due 6/17/1994 23,200
230 Riverhead, New York, Refunding Bonds, Series B, 2.75% due 6/15/1994 230
11,547 Rochester, New York, 3.30% due 3/13/1995 11,549
2,380 Saint Lawrence County, New York, IDA, Civic Facilities Revenue Bonds (Clarkson
University Project), VRDN, 2.30% due 10/01/2005 (a) 2,380
37,400 Suffolk County, New York, IDA, IDR, Refunding (Nissequogue Cogen Partners),
VRDN, 2.20% due 12/15/2023 (a) 37,400
6,700 Suffolk County, New York, Water Authority, BAN, 3.25% due 5/02/1994 6,704
585 Sullivan County, New York, Public Improvement Refunding Bonds, 3.20% due
3/15/1995 585
Puerto Rico-- 4,100 Puerto Rico Commonwealth, Government Development Bank, Revenue Refunding
2.3% Bonds, VRDN, 2% due 12/01/2015 (a) 4,100
750 Puerto Rico Commonwealth, TRAN, Series A, 3% due 7/29/1994 751
4,460 Puerto Rico Housing Bank and Finance Agency, S/F Revenue Bonds, 7.0388% due
12/01/1994 (b) 4,729
4,300 Puerto Rico Industrial, Medical and Environmental Pollution Control
Facility Financing Authority Revenue Bonds, Series A, 2.80% due 12/01/1994 4,300
4,180 Puerto Rico Maritime Shipping Authority, CP, 2.50% due 6/17/1994 4,180
Total Investments (Cost--$782,134*)--101.2% 782,134
Liabilities in Excess of Other Assets--(1.2%) (9,374)
--------
Net Assets--100.0% $772,760
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect
at March 31, 1994.
(b)Prerefunded; to be called.
*Cost for Federal income tax purposes.
See Notes to Financial Statments.
</TABLE>
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$782,134,190) (Note 1a) $ 782,134,190
Cash 22,895
Interest receivable 5,996,320
Prepaid registration fees and other assets (Note 1d) 294,731
---------------
Total assets 788,448,136
---------------
Liabilities:
Payables:
Securities purchased $ 15,110,593
Investment adviser (Note 2) 313,404
Distributor (Note 2) 134,165 15,558,162
---------------
Accrued expenses and other liabilities 130,171
---------------
Total liabilities 15,688,333
---------------
Net Assets $ 772,759,803
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 77,340,149
Paid-in capital in excess of par 696,061,344
Undistributed investment income--net 12,534
Accumulated realized capital losses--net (Note 4) (654,224)
---------------
Net Assets--Equivalent to $1.00 per share based on 773,401,493
shares of beneficial interest outstanding $ 772,759,803
===============
</TABLE>
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 17,080,144
Expenses:
Investment advisory fees (Note 2) $ 3,347,951
Distribution fees (Note 2) 872,640
Transfer agent fees (Note 2) 107,551
Accounting services (Note 2) 96,107
Printing and shareholder reports 59,641
Custodian fees 52,543
Professional fees 44,761
Registration fees (Note 1d) 41,325
Pricing fees 13,084
Trustees' fees and expenses 7,247
Amortization of organization expenses (Note 1d) 4,370
Other 5,868
--------------
Total expenses 4,653,088
---------------
Investment income--net 12,427,056
Realized Loss on Investments--Net (Note 1c) (358,449)
---------------
Net Increase in Net Assets Resulting from Operations $ 12,068,607
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS For the Year Ended March 31,
1994 1993
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 12,427,056 $ 13,528,113
Realized loss on investments--net (358,449) (210,554)
-------------- ---------------
Net increase in net assets resulting from operations 12,068,607 13,317,559
-------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (12,413,890) (13,526,666)
-------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (12,413,890) (13,526,666)
-------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 2,518,353,375 2,342,884,979
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 12,413,591 13,527,081
-------------- ---------------
2,530,766,966 2,356,412,060
Cost of shares redeemed (2,423,631,596) (2,316,001,005)
-------------- ---------------
Net increase in net assets derived from beneficial interest transactions 107,135,370 40,411,055
-------------- ---------------
Net Assets:
Total increase in net assets 106,790,087 40,201,948
Beginning of year 665,969,716 625,767,768
-------------- ---------------
End of year* $ 772,759,803 $ 665,969,716
============== ===============
<FN>
*Undistributed investment income--net $ 12,534 $ 324,658
============== ===============
</TABLE>
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements.
For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Investment income--net .02 .02 .03 .05 .05
-------- -------- -------- -------- --------
Total from investment operations .02 .02 .03 .05 .05
-------- -------- -------- -------- --------
Less dividends:
Investment income--net (.02) (.02) (.03) (.05) (.05)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 1.79% 2.19% 3.37% 4.86% 5.35%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .54% .55% .55% .57% .59%
======== ======== ======== ======== ========
Expenses, net of reimbursement .67% .67% .68% .69% .71%
======== ======== ======== ======== ========
Expenses .67% .67% .68% .69% .72%
======== ======== ======== ======== ========
Investment income--net 1.78% 2.16% 3.31% 4.73% 5.23%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) $772,760 $665,970 $625,768 $633,819 $544,197
======== ======== ======== ======== ========
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NEW YORK MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA New York Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end investment management company. The
following is a summary of significant accounting policies
followed by the Fund.
(a) Valuation of investments--Investments are valued at
amortized cost which approximates market. For the purpose of
valuation, the maturity of a variable rate demand instrument is
deemed to be the next coupon date on which the interest rate is
to be adjusted. In the case of a floating rate instrument, the
remaining maturity is the demand notice payment period.
(b) Income taxes--It is the Fund'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 Federal income
tax provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are
entered into (the trade dates). Interest income (including
amortization of premium and discount) is recognized on the
accrual basis. Realized gains and losses on security transactions
are determined on the identified cost basis.
(d) Deferred organization expenses and prepaid registration
fees--Deferred organization expenses are charged to expense on a
straight-line basis over a five-year period. Prepaid registration
fees are charged to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily
and reinvests daily such dividends (net of non-resident alien tax
withheld) in additional fund shares at net asset value. Dividends
are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net
realized capital gains, if any, are normally distributed annually
after deducting prior years' loss carryforward. The Fund may
distribute capital gains more frequently than annually in order to
maintain the Fund's net asset value at $1.00 per share.
<PAGE>
(f) Reclassification--Undistributed investment income--net, in
the amount of $325,290, has been reclassified to accumulated
realized capital losses--net.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund.
For such services, the Fund pays a monthly fee based upon the
average daily value of the Fund's net assets at the following
annual rates: 0.50% of the Fund's average daily net assets not
exceeding $500 million; 0.425% of average daily net assets in
excess of $500 million but not exceeding $1 billion; and 0.375%
of average daily net assets in excess of $1 billion.
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year
2.5% of the Fund's first $30 million of average daily net assets,
2.0% of the Fund's next $70 million of average daily net assets,
and 1.5% of the average daily net assets in excess thereof. No
fee payment will be made to the Adviser during any year which will
cause such expenses to exceed the pro rata expense limitation at
the time of such payment.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of
1940, Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S")
receives a distribution fee from the Fund at the end of each
month at the annual rate of 0.125% of the average daily net
assets of the Fund. The distribution fee is to compensate MLPF&S
financial consultants and other directly involved branch office
personnel for selling shares of the Fund and for providing direct
personal services to shareholders. The distribution fee is not
compensation for the administrative and operational services
rendered to the Fund by MLPF&S in processing share orders and
administering shareholder accounts.
<PAGE>
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary
of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, MLIM, MLPF&S, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes
in Net Assets for net proceeds from sale of shares and cost of
shares redeemed, respectively, since shares are recorded at $1.00
per share.
4. Capital Loss Carryforward:
At March 31, 1994, the Fund had a net capital loss carryforward
of approximately $583,000, of which $87,000 expires in 1998,
$203,000 expires in 2001, and $293,000 expires in 2002. These
will be available to offset like amounts of any future taxable
gains.
<AUDIT-REPORT>
CMA NEW YORK MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA New York Municipal Money Fund of
CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of
CMA New York Municipal Money Fund of CMA Multi-State
Municipal Series Trust as of March 31, 1994, the related
statements of operations for the year then ended and
changes in net assets for each of the years in the two-year
period then ended, and the financial highlights for each of the
years in the five-year period then ended. These financial
statements and the financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial
highlights based on our audits.
<PAGE>
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of
securities owned at March 31, 1994 by correspondence with the
custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects, the
financial position of CMA New York Municipal Money Fund of CMA
Multi-State Municipal Series Trust as of March 31, 1994, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche
Princeton, New Jersey
April 29, 1994
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
New York Municipal Money Fund of CMA Multi-State Municipal Series
Trust during its taxable year ended March 31, 1994 qualify as
tax-exempt interest dividends for Federal income tax purposes.
Additionally, there were no long-term capital gains distributions
during the Fund's taxable year ended March 31, 1994.
Please retain this information for your records.
