CMA
CMA NEW YORK
MUNICIPAL MONEY FUND
Annual Report
March 31, 1995
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, MA 02101
<PAGE>
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
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
representation of future performance, which will fluctuate. 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, 1995, CMA New York Municipal Money Fund
paid shareholders a net annualized yield of 2.59%*. As of March 31,
1995, the Fund's 7-day yield was 3.31%.
The Environment
During the six months ended March 31, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
(GDP) was reported to have increased at a revised 5.1% rate during
the final quarter of 1994, declines in other indicators such as new
home sales and durable goods orders registered thus far in 1995 have
led investors to anticipate that the economy is losing enough
momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
<PAGE>
However, as US stock and bond markets have risen on more positive
economic news, the value of the US dollar reached new lows relative
to the yen and the Deutschemark. Persistent trade deficits and
exports of capital from the United States have kept the US currency
in a decade-long decline relative to the Japanese and German
currencies. Over the longer term, since the United States has the
highest productivity among industrialized nations and among the
lowest labor costs, demand for US dollar-denominated assets may
improve. However, a reduction of the still-widening US trade deficit
may be necessary before the US dollar appreciates substantially
relative to the yen and the Deutschemark.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and well-
contained inflationary pressures would provide further assurance
that the peak in interest rates is behind us. On the other hand,
indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
Investment Outlook and Strategy
Interest rates on short-term securities finished the six-month
period ended March 31, 1995 higher than they were at the outset of
the period, although they experienced a good deal of volatility
during that time. The restrictive monetary policy that the Federal
Reserve Board initiated in February 1994 was maintained in the six-
month period ended March 31, 1995. On November 15, 1994, the Federal
Reserve Board made its most aggressive move of the cycle by hiking
both the Federal Funds rate and the discount rate 75 basis points
(0.75%) to 5.50% and 4.75%, respectively.
The Federal Reserve Board followed this move with a 50 basis point
hike on February 1, 1995, making it the seventh move of the cycle
and doubling the Federal Funds rate to its current level of 6.00%.
The first half of the six-month period ended March 31, 1995 was
characterized by rising short-term interest rates as investors drove
rates up in anticipation of additional Federal Reserve Board
actions. However, the larger-than-expected increase in the Federal
Funds rate in November 1994 caused investors to believe that the
Federal Reserve Board would achieve the elusive soft landing of the
US economy, thus setting the stage for a rally in US financial
markets which drove interest rates sharply lower. For example,
interest rates on six-month US Treasury bills rose nearly 110 basis
points by the beginning of December 1994 from their October 1, 1994
levels, only to fall approximately 50 basis points by March 31, 1995
for a net increase of approximately 60 basis points.
<PAGE>
During the period ended March 31, 1995, the New York State
Legislature and Governor Pataki remained in a stalemate over passage
of the Governor's proposed $34 billion 1996 budget. The State
Assembly is looking to increase spending while Governor Pataki's
proposed budget includes reducing spending on Medicaid and welfare,
reducing the size of State government and cutting taxes in order to
stimulate the State's stagnant economy. The budget, which is on
course to be late for the eleventh consecutive year, risks drawing
more rating agency attention to the State's efforts to close a
projected $4 billion deficit. In contrast to the strength of the
national economy in 1994 and into the first quarter of 1995, New
York State's economy weakened in mid- to late 1994 because of
continued downsizing by large corporations and State government as
well as layoffs in the securities and banking industries.
New issuance of short-term New York debt totaled approximately $2.3
billion for the six-month period ended March 31, 1995, a substantial
decrease from the $5.5 billion in debt issued in the six-month
period ended December 31, 1994. During the March period, the
average portfolio maturity of CMA New York Municipal Money Fund
ranged from 28 days to 60 days and currently stands at 37 days in
order to seek to take advantage of anticipated higher yields in the
upcoming months because of the seasonal outflows from money market
funds associated with tax payments in April and the possibility of
additional Federal Reserve Board intervention.
We continue to work very closely with our credit department to
maintain the highest quality portfolio possible. Diversification and
credit quality remain paramount in importance to the Fund, and we
will continue to closely monitor the everchanging marketplace.
We thank you for your support of CMA New York Municipal Money Fund,
and we look forward to serving your investment needs in the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
May 2, 1995
<PAGE>
Portfolio Abbreviations for CMA New York Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York-- $22,250 Brentwood, New York, United Free School District, TAN, UT, 4.25% due
94.7% 6/30/1995 $ 22,271
3,000 Broome County, New York, BAN, UT, 3.75% due 4/20/1995 3,001
8,000 Buffalo, New York, RAN, Series A, 5% due 7/12/1995 8,018
7,500 Chautauqua County, New York, TAN, UT, 5.50% due 12/21/1995 7,534
Eagle Tax Exempt Trust, VRDN (a):
27,000 Series 1994-3201, 4.30% due 4/01/2034 27,000
7,200 Series 1994-C4, 4.30% due 8/01/2003 7,200
20,000 Series 1995-3201, 4.30% due 8/15/2024 20,000
3,500 Great Neck, North New York, Water Authority System, Revenue Refunding
Bonds, VRDN, Series A, 4% due 1/01/2020 (a) 3,500
34,900 Metropolitan Transit Authority, New York, Commuter Facilities Revenue
Bonds, VRDN, 3.90% due 7/01/2021 (a) 34,900
200 Monroe County, New York, GO, AMT, UT, Series B, 6.90% due 6/01/1995 201
2,425 Municipal Assistance Corporation, City of New York, New York, Series 54,
9% due 7/01/1995 (b) 2,503
16,600 Nassau County, New York, GO, RAN, 4% due 4/14/1995 16,602
New York City, New York, CP:
20,000 4.15% due 5/24/1995 20,000
24,400 4.40% due 8/22/1995 24,400
New York City, New York, CP, RAN, UT:
<PAGE> 5,000 Series A, 4.50% due 4/12/1995 5,001
4,100 Series B, 4.75% due 6/30/1995 4,103
68,000 New York City, New York, Floating Notes, UT, 4.063% due 6/30/1995 (a) 68,000
New York City, New York, GO, VRDN, UT, Sub-series A-4 (a):
300 4.15% due 8/01/2021 300
1,400 4.15% due 8/01/2022 1,400
5,300 4.15% due 8/01/2023 5,300
5,600 New York City, New York, Housing Development Corporation, M/F Mortgage
Revenue Bonds (Tribecca Towers), VRDN, AMT, Series A, 4% due
12/15/2024 (a) 5,600
14,000 New York City, New York, Housing Development Corporation, Special
Obligation Revenue Bonds (East 96th Street Project), VRDN, Series A,
3.95% due 8/01/2015 (a) 14,000
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995(CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York New York City, New York, IDA, Civic Facilities Revenue Bonds, VRDN (a):
(continued) $ 3,550 (Children's Oncology Society/Ronald McDonald House), 3.90%
due 5/01/2021 $ 3,550
3,200 (Columbia Grammar School Project), 3.90% due 6/30/2014 3,200
New York City, New York, IDA, IDR, VRDN, AMT (a):
1,350 Composite XXV, Series E, 4.10% due 11/01/2010 1,350
1,850 Series K, 4.10% due 11/01/2010 1,850
New York City, New York, Municipal Water Finance Authority Revenue
Bonds, CP:
3,500 4.10% due 4/06/1995 3,500
15,000 4% due 4/07/1995 15,000
6,000 4% due 4/11/1995 6,000
21,000 3.90% due 5/09/1995 21,000
15,000 4.05% due 5/24/1995 15,000
New York City, New York, Trust Cultural Resource Revenue Bonds, VRDN (a):
2,600 (Museum of Broadcasting), 4.10% due 5/01/2014 2,600
9,000 Refunding (American Natural Museum), Series A, 3.90% due 4/01/2021 9,000
New York State Dormitory Authority Revenue Bonds (Memorial Sloan
Kettering), CP:
14,900 Series A, 4.15% due 4/21/1995 14,900
5,400 Series B, 4.15% due 4/21/1995 5,400
18,410 Series B, 4.15% due 4/28/1995 18,410
11,740 Series C, 4.05% due 4/12/1995 11,740
6,200 Series D, 4.05% due 4/12/1995 6,200
13,200 Series D, 4.15% due 4/21/1995 13,200
New York State Dormitory Authority Revenue Bonds, VRDN (a):
7,900 (Metropolitan Museum of Art), Series A, 3.85% due 7/01/2015 7,900
<PAGE> 400 (Saint Francis Center at The Knolls), 4.15% due 7/01/2023 400
New York State Dormitory Authority, Special Obligation Revenue Bonds
(State University Educational Facilities):
1,000 Series A, 6.55% due 5/01/1995 1,003
200 Series B, 6.30% due 5/01/1995 200
15,700 New York State Energy Research and Development Authority, Electric
Facilities Revenue Bonds (Long Island Lighting Co.), VRDN, Series B,
3.85% due 11/01/2023 (a) 15,700
New York State Energy Research and Development Authority, PCR
(Central Hudson Gas & Electric Company Project), VRDN, Series A (a):
7,000 AMT, 3.70% due 6/01/2027 7,000
5,650 3.80% due 11/01/2020 5,650
New York State Energy Research and Development Authority, PCR:
13,325 (Long Island Lighting Co. Project), Series A, 4.70% due 3/01/1996 13,325
16,700 (Niagara Power Corporation Project), VRDN, AMT, Series B,
4.40% due 7/01/2027 (a) 16,700
7,900 Refunding (Central Hudson Gas & Electric Company Project), VRDN,
Series B, 3.55% due 6/01/2027 (a) 7,900
13,800 Refunding (Orange & Rockland Project), VRDN, Series A, 3.90% due
10/01/2014 (a) 13,800
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995(CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York New York State Energy Research and Development Authority, PCR
(continued) (New York State Electric & Gas Corporation Project), CP:
$16,800 3.85% due 4/17/1995 $ 16,800
5,000 Series D, 4% due 4/10/1995 5,000
9,000 Series D, 3.60% due 4/12/1995 9,000
New York State Environmental Facilities Corp., Solid Waste Disposal
Revenue Bonds (General Electric Company Project), CP, Series A:
3,300 3.95% due 4/07/1995 3,300
5,600 3.95% due 4/12/1995 5,600
2,500 Refunding, 4.10% due 5/23/1995 2,500
12,000 New York State Floating Rate Trust Certificates, VRDN, Series A, 4.25%
due 3/02/2003 (a) 12,000
18,500 New York State HFA Revenue Bonds (Normandie Court I), VRDN, 4.05% due
5/15/2015 (a) 18,500
300 New York State HFA, Special Obligation Revenue Bonds (Health Facilities
of New York City), Series A, 6.45% due 5/01/1995 301
New York State Job Development Authority, VRDN (a):
120 1984 Series C, 3.85% due 3/01/1999 120
1,220 1984 Series E, 3.85% due 3/01/1999 1,220
200 1984 Series F, 3.85% due 3/01/1999 200
<PAGE> 15 1984 Series G, 3.85% due 3/01/1999 15
320 Series A, 3.80% due 3/01/2000 320
2,435 Series B, 3.80% due 3/01/2000 2,435
4,685 Series C, 3.80% due 3/01/2000 4,685
3,890 Series D, 3.05% due 3/01/2000 3,890
New York State Local Government Assistance Corporation Revenue Bonds,
VRDN (a):
20,500 Series A, 3.85% due 4/01/2022 20,500
200 Series B, 3.85% due 4/01/2023 200
New York State Medical Care Facilities, Finance Agency Revenue Bonds:
6,100 (Children's Hospital of Buffalo), VRDN, Series A, 3.95% due
11/01/2005 (a) 6,100
4,000 (Mt. Sinai Hospital), Series C, 8.875% due 1/15/1996 (b) 4,214
16,300 (Pooled Loan Equipment Program), VRDN, Series A, 4.10% due
11/01/2003 (a) 16,300
1,200 (Pooled Loan Equipment Program), VRDN, Series 1, 4.10% due
11/01/2015 (a) 1,200
New York State Power Authority, Revenue and General Purpose Bonds:
8,000 4.05% due 5/08/1995 8,000
7,800 3.95% due 6/08/1995 7,800
41,345 (Junior Lien), 4.40% due 9/01/1995 41,345
2,500 Niagara Falls, New York, Commission Toll Bridge Revenue Bonds, VRDN,
Series A, 3.95% due 10/01/2019 (a) 2,500
5,313 Oneida County, New York, BAN, 4.70% due 5/17/1995 5,314
7,250 Patchogue-Medford, New York, Unified Free School District, TAN, UT,
4.50% due 6/30/1995 7,255
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995(CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New York Port Authority of New York and New Jersey, CP:
(concluded) $ 3,345 4.10% due 4/12/1995 $ 3,345
3,415 4.05% due 4/13/1995 3,415
10,350 3.80% due 6/08/1995 10,350
9,500 Rochester, New York, RAN, 5.25% due 6/30/1995 9,516
2,145 Saint Lawrence County, New York, IDA, Civic Facility Revenue Bonds
(Clarkson University Project), VRDN, 4.25% due 10/01/2005 (a) 2,145
7,700 Saranac, New York, Central School District Revenue Bonds, BAN, 5% due
6/30/1995 7,708
3,335 South Huntington, New York, Unified Free School District, TAN, UT,
4.50%due 6/30/1995 3,340
29,100 Suffolk County, New York, IDA, IDR (Nissequogue Cogeneration Partners),
VRDN, 4.10% due 12/15/2023 (a) 29,100
41,000 Triborough Bridge and Tunnel Authority, New York Special Obligation
Revenue Bonds, VRDN, 3.80% due 1/01/2024 (a) 41,000
12,200 West Babylon, New York, Unified Free School District, TAN, 4.50% due
6/29/1995 12,213
<PAGE>
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank Revenue Bonds:
4.7% 15,000 CP, 3.90% due 4/10/1995 15,000
5,000 CP, 4% due 4/10/1995 5,000
20,000 CP, 3.75% due 5/10/1995 20,000
3,000 Refunding, VRDN, 4.10% due 12/01/2015 (a) 3,000
Total Investments (Cost--$914,058*)-- 99.4% 914,058
Other Assets Less Liabilities--0.6% 5,794
----------
Net Assets--100.0% $ 919,852
==========
<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, 1995.
(b)Prerefunded; to be called.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$914,057,864) (Note 1a) $ 914,057,864
Cash 48,362
Interest receivable 6,567,679
Prepaid registration fees and other assets (Note 1d) 17,245
---------------
Total assets 920,691,150
---------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 372,351
Distributor (Note 2) 274,983 647,334
---------------
Accrued expenses and other liabilities 191,576
---------------
Total liabilities 838,910
<PAGE> ---------------
Net Assets $ 919,852,240
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 92,074,474
Paid-in capital in excess of par 828,670,265
Accumulated realized capital losses--net (Note 4) (892,499)
---------------
Net Assets--Equivalent to $1.00 per share based on 920,744,739 shares of
beneficial interest outstanding $ 919,852,240
===============
</TABLE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 26,492,486
Expenses:
Investment advisory fees (Note 2) $ 3,831,293
Distribution fees (Note 2) 1,013,471
Transfer agent fees (Note 2) 179,256
Registration fees (Note 1d) 115,354
Accounting services (Note 2) 89,857
Printing and shareholder reports 60,555
Professional fees 55,368
Custodian fees 53,399
Pricing fees 10,756
Trustees' fees and expenses 10,348
Other 11,878
---------------
Total expenses 5,431,535
---------------
Investment income--net 21,060,951
Realized Loss on Investments--Net (Note 1c) (251,800)
---------------
Net Increase in Net Assets Resulting from Operations $ 20,809,151
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <C> <C>
Operations:
Investment income--net $ 21,060,951 $ 12,427,056
Realized loss on investments--net (251,800) (358,449)
--------------- ---------------
Net increase in net assets resulting from operations 20,809,151 12,068,607
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (21,059,960) (12,413,890)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (21,059,960) (12,413,890)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 3,003,904,257 2,518,353,375
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 21,059,556 12,413,591
--------------- ---------------
3,024,963,813 2,530,766,966
Cost of shares redeemed (2,877,620,567) (2,423,631,596)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 147,343,246 107,135,370
--------------- ---------------
Net Assets:
Total increase in net assets 147,092,437 106,790,087
Beginning of year 772,759,803 665,969,716
--------------- ---------------
End of year* $ 919,852,240 $ 772,759,803
=============== ===============
<FN>
*Undistributed investment income-- net (Note 1f) $ -- $ 12,534
=============== ===============
</TABLE>
<PAGE>
<TABLE>
CMA NEW YORK MUNICIPAL MONEY FUND
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: 1995 1994 1993 1992 1991
<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 .03 .02 .02 .03 .05
--------- --------- --------- --------- ---------
Total from investment operations .03 .02 .02 .03 .05
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.03) (.02) (.02) (.03) (.05)
--------- --------- --------- --------- ---------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.59% 1.79% 2.19% 3.37% 4.86%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .54% .54% .55% .55% .57%
========= ========= ========= ========= =========
Expenses .67% .67% .67% .68% .69%
========= ========= ========= ========= =========
Investment income--net 2.59% 1.78% 2.16% 3.31% 4.73%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of year (in thousands) $ 919,852 $ 772,760 $ 665,970 $ 625,768 $ 633,819
========= ========= ========= ========= =========
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 management investment 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 value. 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) Prepaid registration fees--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 de-
ducting 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.
(f) Reclassification--Generally accepted accounting principles
require that certain differences between undistributed net
investment income for financial reporting and tax purposes, if
permanent, be reclassified to accumulated net realized capital
losses. Accordingly, current year's permanent book/tax differences
of $13,525 have been reclassified from undistributed net investment
income to accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset value
per share.
<PAGE>
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). The general partner of
FAM is Princeton Serv-ices, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
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 first $500 million of average daily net assets; 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.
CMA NEW YORK MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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.
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 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.
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, PSI, MLPF&S, FDS, and/or ML & Co.
<PAGE>
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, 1995, the Fund had a net capital loss carryforward of
approximately $887,000, of which $87,000 expires in 1998, $203,000
expires in 2001, $293,000 expires in 2002, and $304,000 expires in
2003. This amount 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, 1995, 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.
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, 1995 by correspondence with the custodian. 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, 1995, 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 LLP
Princeton, New Jersey
May 2, 1995
</AUDIT-REPORT>
<PAGE>
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, 1995 qualify as tax-exempt
interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed during the
Fund's taxable year ended March 31, 1995.
Please retain this information for your records.
