CMA
CMA CALIFORNIA
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 California
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA California Municipal Money
Fund paid shareholders a net annualized yield of 2.66%*. As of March
31, 1995, the Fund's 7-day yield was 3.28%.
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 at the beginning of the
period. However, interest rates were volatile during the March
period. The restrictive monetary policy initiated by the Federal
Reserve Board in February 1994 was maintained during 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 increase on February 1,
1995, making it the seventh interest rate hike of the cycle and
doubling the Federal Funds rate to its current level of 6.00%.
The first half of the March period was one of rising short-term
interest rates as investors drove interest rates up in anticipation
of additional Federal Reserve Board tightening. However, the larger-
than-expected increase in the Federal Funds rate in November 1994
led investors to believe that the Federal Reserve Board would
achieve the elusive soft landing of the US economy. This set 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 the end of March 1995 for a net increase of approx-
imately 60 basis points.
<PAGE>
At the beginning of the six-month period ended March 31, 1995,
continued signs of economic strength as well as the ensuing threat
of a rise in interest rates convinced us to maintain a cautious
approach to the municipal bond market. For much of the recent
period, CMA California Municipal Money Fund maintained an average
portfolio maturity in the mid-30 day range. We began the six-month
period ended March 31, 1995 with assets of $1.2 billion and ended
the period moderately unchanged. After maintaining a constant asset
level of $14.2 billion for 1994, assets for the California tax-
exempt money funds increased during the first quarter of 1995 by
almost $1 billion. During the first quarter, California issuance was
just under $500 million. Given the sustained demand for California
paper and its limited availability, we increased the average
portfolio maturity to the mid-40 day range and expect to maintain an
average maturity in this range for the April "tax season," a period
when funds typically experience redemptions because of tax payments.
We are uncertain about the upcoming financing needs of the State and
its municipalities as we approach the spring and summer borrowing
period. During the upcoming months, we will again focus on expanding
the diversification of the portfolio, and we will continue to
monitor the status of all our California credits.
During the six-month period ended March 31, 1995, newly re-elected
Governor Pete Wilson gave his State of the State address and
presented his fiscal 1996 budget. In his budget, Wilson, echoing
other Republican governors, proposed a reduction in the State's
corporate and personal income taxes which will be paid for with
anticipated increased revenues to the State, which is in the early
stages of a recovery. The unemployment rate, while still the highest
in the nation, fell from 10.1% to 7.4% during 1994. California is
also moving away from a dependence on the defense industry and is
diversifying its work force. In his budget, Wilson presented
conservative economic assumptions including a more realistic
estimate of expected Federal aid of $835 million, a drop of $2
billion from the previous year's budget. Governor Wilson intends to
shift responsibility for some social services back to the county
level, which will negatively affect the counties' finances. In the
upcoming months, we will monitor the budget debate and its impact
especially as we approach the State fiscal year-end on June 30,
1995.
In Conclusion
We thank you for your continued support of CMA California 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
<PAGE>
April 28, 1995
Portfolio Abbreviations for CMA California Municipal Money Fund
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
RAW Revenue Anticipation Warrants
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA CALIFORNIA 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>
California-- $ 6,000 Alameda County, California, IDA, IDR, Refunding (Hoover University
92.9% Inc. Project), VRDN, 4.25% due 6/01/2004 (a) $ 6,000
2,500 Anaheim, California, M/F Housing Authority Revenue Bonds (Bel Age
Project), VRDN, AMT, Series A, 4.10% due 8/01/2020 (a) 2,500
2,500 Berkeley, California, TRAN, 4.25% due 7/11/1995 (b) 2,501
11,200 Big Bear Lake, California, IDR (Southwest Gas Corporation Project),
VRDN, AMT, Series A, 4.05% due 12/01/2028 (a) 11,200
California Health Facilities Financing Authority Revenue Bonds,
VRDN (a):
5,000 (Catholic Health Care), Series A, 3.95% due 7/01/2009 5,000
6,600 (Catholic Health Care), Series B, 3.95% due 7/01/2016 6,600
9,145 (Huntington Memorial Hospital), 3.90% due 11/01/2010 9,145
2,700 (Pooled Loan Program), 4.20% due 9/01/2020 2,700
1,000 (Saint Joseph Health System), Series B, 4.10% due 7/01/2009 1,000
4,100 (Scripps Memorial Hospital), Series B, 4.15% due 12/01/2015 4,100
California Pollution Control Financing Authority, PCR, Refunding
<PAGE> (Pacific Electric & Gas), CP:
19,130 AMT, Series A, 3.85% due 4/03/1995 19,130
6,000 AMT, Series A, 4.10% due 5/01/1995 6,000
15,000 AMT, Series A, 4% due 5/08/1995 15,000
14,100 AMT, Series B, 4.15% due 5/31/1995 14,100
12,175 Series C, 3.55% due 4/05/1995 12,175
5,000 Series E, 4% due 4/04/1995 5,000
2,000 Series E, 3.65% due 4/05/1995 2,000
7,600 Series E, 3.75% due 5/11/1995 7,600
11,000 Series F, 3.85% due 5/01/1995 11,000
11,500 Series F, 4% due 5/30/1995 11,500
California Pollution Control Financing Authority, PCR (Southern
California Edison):
4,900 CP, Series C, 3.80% due 4/03/1995 4,900
1,500 CP, Series C, 3.55% due 4/06/1995 1,500
1,350 CP, Series C, 3.95% due 5/19/1995 1,350
2,600 CP, Series D, 3.95% due 5/12/1995 2,600
27,300 VRDN, Series A, 4.25% due 2/28/2008 (a) 27,300
5,100 VRDN, Series B, 4.25% due 2/28/2008 (a) 5,100
14,000 VRDN, Series C, 4.25% due 2/28/2008 (a) 14,000
13,900 VRDN, Series D, 4.25% due 2/28/2008 (a) 13,900
</TABLE>
<TABLE>
CMA CALIFORNIA 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>
California California Pollution Control Financing Authority, Resource Recovery
(continued) Revenue Bonds, VRDN, AMT (a):
$ 6,200 (Atlantic Richfield Company Project), Series A, 4.50% due
12/01/2024 $ 6,200
12,500 (Delano Project), 4.25% due 8/01/2019 12,500
5,700 (Honey Lake Power Project), 4.25% due 9/01/2018 5,700
2,400 (Sanger Project), Series A, 4.05% due 9/01/2020 2,400
California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (Shell Oil Co.--Martinez Project), VRDN, AMT (a):
11,700 Series A, 4.45% due 10/01/2024 11,700
3,100 Series B, 4.45% due 12/01/2024 3,100
25,000 California Public Capital Improvements Financing Authority Revenue
Bonds (Pooled Loan Program), Series D, 4.30% due 6/15/1995 25,000
California State:
84,750 RAN, Series A, 5% due 6/28/1995 84,871
30,000 RAW, Series C, 5.75% due 4/25/1996 30,259
7,500 California State Department of Water Resource Revenue Bonds (Central
Valley Project), VRDN, Series N-V2, 3.90% due 12/01/2025 (a) 7,500
3,800 California State Department of Water Resource Revenue Bonds, CP,
<PAGE> 3.60% due 4/05/1995 3,800
10,000 California State GO, VRDN, 4.35% due 11/01/2020 (a) 10,000
3,200 California Statewide Community Development Authority, Revenue Refunding
Bonds (Saint Joseph Health System), VRDN, COP, 4% due 7/01/2008 (a) 3,200
Chula Vista, California, IDR (San Diego Electric & Gas), CP, AMT:
10,000 Series C, 4% due 5/19/1995 10,000
20,000 Series D, 3.95% due 5/09/1995 20,000
15,000 Series E, 4.25% due 4/11/1995 15,000
6,800 Contra Costa, California, Transportation Authority, Sales Tax Revenue
Bonds, VRDN, Series A, 3.90% due 3/01/2009 (a) 6,800
Eagle Tax Exempt Trust, VRDN (a):
9,500 4.30% due 2/01/2006 9,500
19,400 Series 1994 C-6, 4.30% due 8/01/2017 19,400
14,800 Series 1994 C-7, 4.25% due 8/01/2023 14,800
2,000 East Bay, Municipal Utility District, California, Wastewater Treatment
System Revenue Bonds, CP, 4.05% due 5/25/1995 2,000
20,560 Eastern Municipal Water District, California, Water and Sewer Revenue
Refunding Bonds, VRDN, COP, Series B, 4% due 7/01/2020 (a) 20,560
22,334 FB California Floating Trust Certificates, VRDN, Series 9, 4.35% due
4/25/1996 (a) 22,334
20,000 Floating Rate Trust Certificates, VRDN, Series 1992 H, 4.60% due
10/02/1998 (a) 20,000
8,050 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, Series A, 4.05% due 12/01/2016 (a) 8,050
22,200 Fresno Unified School District, California, TRAN, 4.75% due 7/19/1995 (b) 22,251
7,500 Hemet, California, M/F Housing Revenue Bonds (Pacific Senior Estates),
VRDN, Series A, 4% due 7/01/2007 (a) 7,500
3,260 Kings County, California, Board of Education, TRAN, UT, 4.25% due
7/28/1995 (b) 3,261
</TABLE>
<TABLE>
CMA CALIFORNIA 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>
California Long Beach, California, Harbor Revenue Bonds, CP, AMT, Series A:
(continued) $15,000 4.10% due 4/11/1995 $ 15,000
15,000 4.10% due 4/12/1995 15,000
4,000 4.20% due 4/12/1995 4,000
23,000 3.90% due 5/08/1995 23,000
22,500 3.90% due 5/11/1995 22,500
8,700 Los Angeles, California, M/F Housing Revenue Bonds (Beverly Park
Apartments Project), VRDN, AMT, Series A, 4% due 8/01/2018 (a) 8,700
2,000 Los Angeles, California, Metropolitan Transportation Authority Revenue
Bonds (Union Station Gateway Project), VRDN, Series A, 4.10% due
7/01/2025 (a) 2,000
<PAGE> 10,865 Los Angeles, California, Wastewater System Revenue Bonds, CP, 4.05% due
5/25/1995 10,865
9,200 Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Refunding Bonds (Proposition C--Second Senior), VRDN,
Series A, 4% due 7/01/2020 (a) 9,200
3,660 Los Angeles County, California, TRAN, UT, 4.50% due 6/30/1995 3,660
Los Angeles County, California, Transportation Commission Sales Tax
Revenue Bonds, Series A:
6,200 CP, 4.10% due 4/07/1995 6,200
3,000 Refunding, VRDN, 3.90% due 7/01/2012 (a) 3,000
15,000 Marin County, California, TRAN, 4.25% due 7/06/1995 (b) 15,019
3,000 Monterey Penninsula, California, Water Management District, COP
(Wastewater Reclamation Project), VRDN, 4.10% due 7/01/2022 (a) 3,000
6,000 Moor Park, California, M/F Mortgage Revenue Refunding Bonds (Le Club
Apartments Project), VRDN, Series A, 4.10% due 11/01/2015 (a) 6,000
20,000 Oakland, California, TRAN, UT, 4.50% due 7/24/1995 (b) 20,031
Oxnard, California, Unified School District, TRAN:
1,280 4.50% due 7/13/1995 1,282
5,120 4.50% due 7/13/1995 (b) 5,129
Palm Springs, California, Community Redevelopment Agency, COP,
VRDN (a):
1,000 Headquarters Hotel 3, 4.10% due 12/01/2014 1,000
1,700 Headquarters Hotel 9, 4.10% due 12/01/2014 1,700
11,470 Pittsburg, California, Mortgage Obligation Bonds, VRDN, Series A,
4.25% due 12/30/2022 (a) 11,470
2,900 Redlands, California, M/F Housing Revenue Bonds (Orange Village
Apartments Project), VRDN, AMT, Series A, 4.05% due 8/01/2018 (a) 2,900
Riverside County, California, COP (Riverside County Public Facilities),
ACES, VRDN (a):
13,300 Series A, 4.15% due 12/01/2015 13,300
6,300 Series B, 4.15% due 12/01/2015 6,300
1,660 Series D, 4.15% due 12/01/2015 1,660
Riverside County, California, Housing Authority, M/F Mortgage Revenue
Bonds, VRDN (a):
3,850 (Emeritus Park), Series B, 4% due 8/01/2018 3,850
6,000 (Woodcreek Village), Series D, 4% due 8/01/2018 6,000
</TABLE>
<TABLE>
CMA CALIFORNIA 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>
California $13,600 Roseville, California, Finance Authority, Hospital Lease Revenue
(concluded) Bonds (Roseville Hospital), VRDN, Series A, 4.05% due 10/01/2014 (a) $ 13,600
16,200 Sacramento Municipal Utility District, California, CP, 4% due
5/01/1995 16,200
<PAGE> 6,110 San Bernardino County, California, Residential Mortgage Revenue
Refunding Bonds (Ramona Garden), VRDN, Series A, 4.10% due 2/01/2017 (a) 6,110
San Diego, California, M/F Housing Authority Revenue Bonds, VRDN (a):
6,035 (La Cima Apartments), Series K, 4.10% due 12/01/2008 6,035
18,000 (Nobel Court Apartments), 4.10% due 12/01/2008 18,000
San Diego County, California, Regional Transportation Commission Sales
Tax Revenue Bonds (Second Senior), VRDN, Series A (a):
32,500 3.90% due 4/01/2008 32,500
8,500 4.15% due 4/01/2008 8,500
10,000 San Leandro, California, M/F Revenue Bonds (Parkside Commons), VRDN,
Series A, 4% due 7/15/2018 (a) 10,000
39,940 San Mateo County, California, TRAN, GO, 4.50% due 7/13/1995 (b) 40,018
32,800 Santa Clara County, California, TRAN, UT, 4.25% due 7/07/1995 (b) 32,833
8,900 Santa Cruz County, California, TRAN, 4.50% due 8/01/1995 (b) 8,922
5,325 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek Apartments
Project), VRDN, AMT, Series A, 4.05% due 6/01/2018 (a) 5,325
3,675 Simi Valley, California, Community Redevelopment Agency, M/F Housing
Revenue Bonds (Ashlee Manor Project), VRDN, AMT, Series A, 4.05% due
10/01/2017 (a) 3,675
8,900 Simi Valley, California, M/F Housing Revenue Refunding Bonds (Cochran
Street Project), Issue A, VRDN, 3.95% due 11/15/2004 (a) 8,900
14,000 Tulare County, California, TRAN, 4.75% due 8/25/1995 (b) 14,027
6,650 Ventura County, California, TRAN, 4.50% due 8/01/1995 (b) 6,633
Puerto Rico--6.8% Puerto Rico Commonwealth, Government Development Bank Revenue
Bonds, CP:
8,500 3.45% due 4/03/1995 8,500
10,800 3.75% due 4/06/1995 10,800
20,000 3.60% due 4/07/1995 20,000
10,000 3.85% due 4/11/1995 10,000
20,000 3.75% due 5/01/1995 20,000
10,000 3.70% due 5/09/1995 10,000
Total Investments (Cost--$1,164,931*)-- 99.7% 1,164,931
Other Assets Less Liabilities--0.3% 3,303
----------
Net Assets--100.0% $1,168,234
==========
<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)MBIA Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,164,931,184) (Note 1a) $ 1,164,931,184
Cash 289,170
Receivables:
Interest $ 13,333,341
Beneficial interest sold 316,708 13,650,049
---------------
Prepaid registration fees and other assets (Note 1d) 210,582
---------------
Total assets 1,179,080,985
---------------
Liabilities:
Payables:
Securities purchased 9,837,365
Investment adviser (Note 2) 465,086
Distributor (Note 2) 386,769 10,689,220
---------------
Accrued expenses and other liabilities 157,346
---------------
Total liabilities 10,846,566
---------------
Net Assets $ 1,168,234,419
---------------
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 116,921,595
Paid-in capital in excess of par 1,052,294,357
Undistributed investment income--net 13,584
Accumulated realized capital losses--net (Note 4) (995,117)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,169,215,952 shares of
beneficial interest outstanding $ 1,168,234,419
===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA 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 $ 39,037,823
Expenses:
Investment advisory fees (Note 2) $ 5,371,374
Distribution fees (Note 2) 1,492,270
Transfer agent fees (Note 2) 186,485
Accounting services (Note 2) 147,332
Printing and shareholder reports 77,857
Custodian fees 75,602
Professional fees 54,972
Registration fees (Note 1d) 23,971
Trustees' fees and expenses 15,839
Pricing fees 12,877
Other 144,972
---------------
Total expenses 7,603,551
---------------
Investment income--net 31,434,272
Realized Loss on Investments--Net (Note 1c) (508,031)
---------------
Net Increase in Net Assets Resulting from Operations $ 30,926,241
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
1995 1994
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 31,434,272 $ 20,859,333
Realized loss on investments--net (508,031) (467,649)
--------------- ---------------
Net increase in net assets resulting from operations 30,926,241 20,391,684
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (31,420,688) (20,855,158)
Realized gain on investments--net -- (100,764)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (31,420,688) (20,955,922)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 4,208,416,998 3,766,542,841
Net asset value of shares issued to shareholders in reinvestment of
dividends and distributions (Note 1e) 31,421,185 20,933,840
--------------- ---------------
4,239,838,183 3,787,476,681
Cost of shares redeemed (4,296,269,504) (3,576,552,548)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest
transactions (56,431,321) 210,924,133
Net Assets:
Total increase (decrease) in net assets (56,925,768) 210,359,895
Beginning of year 1,225,160,187 1,014,800,292
--------------- ---------------
End of year* $ 1,168,234,419 $ 1,225,160,187
=============== ===============
<FN>
*Undistributed investment income-- net $ 13,584 --
=============== ===============
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA 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 2.66% 1.93% 2.25% 3.48% 4.96%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .51% .50% .51% .51% .50%
========== ========== ========== ========== ==========
Expenses .63% .62% .63% .63% .62%
========== ========== ========== ========== ==========
Investment income--net 2.62% 1.91% 2.22% 3.42% 4.83%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,168,234 $1,225,160 $1,014,800 $1,033,423 $1,163,288
========== ========== ========== ========== ==========
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA California 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
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.
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 Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co. ("ML & Co."), which is the limited
partner.
<PAGE>
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.
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.
CMA CALIFORNIA MUNICIPAL MONEY FUND
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 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.
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.
<PAGE>
4. Capital Loss Carryforward:
At March 31, 1995, the Fund had a net capital loss carryforward of
approximately $948,000, of which $472,000 expires in 2002, and
$476,000 expires in 2003. This amount will be available to offset
like amounts of any future taxable gains.
<AUDIT-REPORT>
CMA CALIFORNIA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA California 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
California 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 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 California 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
April 28, 1995
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
California Municipal Money Fund of CMA Multi-State Municipal Series
Trust during the 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.
