CMA CALIFORNIA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1996
MERRILL LYNCH
BULL LOGO
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. Statements and
other information herein are as dated and are subject to change.
<PAGE>
CMA California
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1996, CMA California
Municipal Money Fund paid shareholders a net annualized yield of
2.84%*. As of September 30, 1996, the Fund's 7-day yield was 3.12%.
The Environment
Although the US stock and bond markets rallied late in the six-month
period ended September 30, 1996, much of the period was marked by
volatility in the capital markets. The US economy demonstrated
surprising resilience during the first half of the year. As a
result, when economic data releases appeared to indicate that the US
economy was expanding at a stronger-than-expected (and potentially
inflationary) rate, investors focused on the increasing possibility
of monetary policy tightening by the Federal Reserve Board. During
these periods, stock prices declined and long-term interest rates
moved higher. However, with inflationary pressures still under
control, the US central bank did not tighten monetary policy at its
September 24 meeting. This development, coupled with several
economic data releases that showed growth was at or below
expectations, helped to assuage investors' concerns about an
overheating economy. Stock and bond prices improved, with stock
market averages reaching historic high levels.
<PAGE>
The shifts in perceptions were exemplified by investors' reactions
to the release of recent employment reports. Inflationary concerns
were heightened in early July with the release of a stronger-than-
expected employment report for June. However, more subdued job
growth and decelerating hourly wage gains were subsequently
reported for the month of July. Although the employment report for
August showed that unemployment had dropped to its lowest level
since 1989, these results were generally in line with expectations,
and were received favorably by investors. The greatest boost in
investor confidence occurred in early October with the release of
September's employment report, which showed a slight increase in
unemployment.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Investors will continue to monitor economic data releases to
determine the probable direction of the US economy. The outcome of
the upcoming November election will also increasingly influence
investor psychology in the weeks ahead.
Investment Outlook and Strategy
California's economy continues to improve and in June, the State's
non-farm employment reached an all-time high of 12.7 million jobs
according to the State's Department of Finance. This eclipses the
previous record set in May 1990. High technology and business
services are the dominant contributors to the State's growth.
However, the motion picture, electronic and tourist industries are
also large contributors to California's economic rebound.
Over the course of the past six-month period, assets of CMA
California Municipal Money Fund were virtually unchanged, and
totaled $1.4 billion on September 30, 1996. However, this is an
increase of over $135 million from September 30, 1995. Assets for
the California tax-exempt industry totaled $18.5 billion at the end
of September. This represents an increase of over $2 billion from
the same period last year. Issuance during the April--September
months totaled $12.3 billion compared to $6.9 billion in the
corresponding period of 1995. During the September period, the State
of California accounted for approximately 58% of all California
issuance.
<PAGE>
Throughout the six-month period ended September 30, 1996, we
experienced interest rate volatility caused by conflicting economic
data which alternately indicated a weak and strengthening economy.
For example, the yield on the one-year Treasury bill began the
period at 5.38%. Midway through the period this bill yielded 6% and
on September 30, it yielded 5.65%. In light of this volatility, we
maintained a conservative approach to the market. In April, the
average portfolio maturity was below 30 days. Typically, April is a
period of net redemptions from funds because of tax-related
payments. We concentrated on the purchase of variable rate debt and
tax-exempt commercial paper. Variable rate products offer a great
deal of liquidity to the Fund, and the rate adjusts rapidly in
response to supply and demand. Therefore, they offer more yield
during a period of greater supply than demand. Tax-exempt commercial
paper provides us with the flexibility to determine the maturity of
the product according to our interest rate forecast. At the end of
April, the State of California entered the market with the issuance
of a $2 billion interim financing note to fund the State's finances
until its fiscal year ended on June 30, 1996. In July, the State re-
entered the market with its annual note financing which totaled $3
billion. In addition to the State financing, in June and July many
local municipalities entered the market to fund their budgetary
needs with their own note financing. In general, the fiscal
improvement experienced at the state level translated into fiscal
improvement at the county level as well. Therefore, we extended our
average portfolio maturity to the mid 40-day range with select
purchases of these notes which provided both diversification and an
attractive yield.
As we enter the fourth quarter of the year, traditionally a period
of light issuance, we will continue to monitor economic data in an
attempt to accurately gauge the strength of the economy and the
corresponding impact on interest rates. When appropriate, we
anticipate utilizing the Fund's large commercial paper holdings to
extend its average portfolio maturity.
In Conclusion
We appreciate your continued interest in CMA California Municipal
Money Fund, and we look forward to serving your investment needs in
the future.
Sincerely,
<PAGE>
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Helen M. Sheehan)
Helen M. Sheehan
Vice President and Portfolio Manager
October 29, 1996
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
HFA Housing Financing Agency
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
California-- $ 4,000 California HFA, Home Mortgage Revenue Bonds, Series D, 3.55%
98.7% due 4/01/1997 $ 4,000
10,000 California HFA, Multi-Unit Rental Housing Revenue Bonds, Series A,
3.70% due 11/01/1996 (b) 10,000
California Health Facilities Financing Authority Revenue Bonds, VRDN (a):
1,000 (Catholic Healthcare), Series B, 3.65% due 7/01/2006 (b) 1,000
1,500 (Pooled Loan Program), Series 85-B, 3.70% due 10/01/2010 (c) 1,500
13,600 (Pooled Loan Program), Series 90-A, 3.70% due 9/01/2020 13,600
2,600 (Pooled Loan Program), Series A, 3.70% due 6/01/2007 2,600
2,400 Refunding (Catholic Healthcare West), Series B, 3.65% due 7/01/2005 (b) 2,400
2,000 Refunding (Catholic Healthcare West), Series C, 3.65% due 7/01/2011 (b) 2,000
1,300 Refunding (Catholic Healthcare West), Series D, 3.65% due 7/01/2018 (b) 1,300
7,600 (Scripps Memorial Hospital), Series A, 3.70% due 12/01/2005 (b) 7,600
23,530 (Scripps Memorial Hospital), Series B, 3.70% due 12/01/2015 (b) 23,530
California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas and Electric):
15,000 CP, AMT, Series E, 3.45% due 11/06/1996 15,000
21,500 CP, Series C, 3.85% due 10/04/1996 21,500
71,000 VRDN, AMT, Series B, 3.75% due 12/01/2016 (a) 71,000
19,000 VRDN, AMT, Series G, 3.95% due 2/01/2016 (a) (b) 19,000
18,300 VRDN, Series C, 3.85% due 11/01/2026 (a) 18,300
California Pollution Control Financing Authority, PCR (Southern California
Edison):
13,800 CP, Series C, 3.40% due 10/23/1996 13,800
6,150 CP, Series D, 3.65% due 12/09/1996 6,150
4,835 VRDN, Series D, 3.90% due 2/28/2008 (a) 4,835
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, VRDN, AMT (a):
21,200 (Atlantic Richfield Company Project), Series A, 4% due 12/01/2024 21,200
17,900 (Delano Project), 3.95% due 8/01/2019 17,900
24,000 (Delano Project), Series 1991, 3.95% due 8/01/2019 24,000
6,300 (Honey Lake Power Project), 3.95% due 9/01/2018 6,300
2,600 Refunding (Ultra Power Malaga Project), Series A, 4% due 4/01/2017 2,600
4,200 Refunding (Ultra Power Malaga Project), Series B, 4% due 4/01/2017 4,200
8,000 Refunding (Ultra Power Rocklin Project), Series A, 4% due 6/01/2017 8,000
5,600 Refunding (Ultra Power Rocklin Project), Series B, 4% due 6/01/2017 5,600
California Pollution Control Financing Authority, Solid Waste Disposal
Revenue Bonds (Shell Oil Co.--Martinez Project), VRDN, AMT (a):
56,600 Series A, 3.95% due 10/01/2024 56,600
17,200 Series B, 3.95% due 12/01/2024 17,200
25,000 California Public Capital Improvements Financing Authority Revenue Bonds
(Pooled Loan Project), Series D, 3.80% due 12/15/1996 25,000
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
California California State Department of Water, Resource Revenue Bonds, CP,
(continued) Series 1:
$ 5,018 3.35% due 10/08/1996 $ 5,018
4,000 3.45% due 10/09/1996 4,000
7,725 California State, GO, CP, 3.60% due 10/28/1996 7,725
California State, GO, VRDN (a):
15,000 3.95% due 8/01/2015 15,000
10,000 3.95% due 11/01/2020 10,000
California State, RAN:
36,720 Series A, 4.50% due 6/30/1997 36,866
5,000 Series C-1, 3.65% due 6/30/1997 5,000
9,000 Series C-3, 3.70% due 6/30/1997 9,000
1,000 California Statewide Community Development Authority, Solid Waste
Facility Revenue Bonds (Chevron United States Inc. Project), VRDN, AMT,
3.95% due 12/15/2024 (a) 1,000
Chula Vista, California, IDR (San Diego Gas & Electric Co.), CP, AMT,
Series D:
10,000 3.30% due 10/04/1996 10,000
20,000 3.65% due 10/07/1996 20,000
20,000 3.65% due 10/09/1996 20,000
10,000 3.65% due 10/29/1996 10,000
2,200 Contra Costa County, California, Housing Authority, M/F Mortgage
Revenue Bonds (Lakeshore Apartments), VRDN, Series A, 3.70%
due 11/15/2012 (a) 2,200
3,200 Contra Costa County, California, TRAN, 4.50% due 7/03/1997 3,213
Eagle Tax Exempt Trust, VRDN (a):
9,500 3.95% due 2/01/2006 9,500
18,400 Series 1994 C-6, 3.95% due 8/01/2017 18,400
14,800 Series 1994 C-7, 3.95% due 8/01/2023 14,800
18,600 East Bay, California, Municipal Utility District, Wastewater Treatment
System Revenue Bonds, CP, 3.65% due 10/24/1996 18,600
20,000 Floating Rate Trust Certificates, VRDN, Series 1992 H, 4.95% due
10/02/1998 (a)(d) 20,000
7,050 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, Series A, 3.80% due 12/01/2016 (a) 7,050
Golden Empire Schools Financing Authority, California, Revenue Refunding
Bonds, VRDN (a):
9,100 (Golden Empire Project), Series B, 3.75% due 12/01/2024 9,100
11,400 (Kern High School District), Series A, 3.75% due 12/01/2024 11,400
13,000 Hayward, California, M/F Housing Revenue Bonds (Shorewood Apartments),
VRDN, Series A, 3.65% due 8/01/2014 (a)(c) 13,000
5,950 Indio, California, M/F Revenue Refunding Housing Mortgage Bonds
(Carreon Villa Project), VRDN, Series A, 3.75% due 8/01/2026 (a) 5,950
4,900 Kern County, California, COP (Kern Public Facilities Project), VRDN,
Series C, 3.65% due 8/01/2006 (a) 4,900
18,985 Loma Linda, California, M/F Housing Revenue Bonds (Loma Linda Springs
Apartments), VRDN, 3.80% due 7/01/2019 (a) 18,985
Long Beach, California, Harbor Revenue Bonds, CP, AMT, Series A:
6,500 3.30% due 10/04/1996 6,500
17,000 3.65% due 10/09/1996 17,000
29,900 3.50% due 11/07/1996 29,900
10,000 3.70% due 12/09/1996 10,000
2,500 3.65% due 12/12/1996 2,500
3,000 Los Angeles, California, Department of Airports, Airport Revenue
Bonds, VRDN, AMT, 3.95% due 5/15/2020 (a) (c) 3,000
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
California $ 9,000 Los Angeles, California, Department of Water and Power Revenue Bonds,
(continued) CP, 3.65% due 10/25/1996 $ 9,000
5,000 Los Angeles, California, Harbor Department Revenue Bonds, VRDN, AMT,
3.95% due 8/01/2026 (a) 5,000
Los Angeles, California, M/F Housing Revenue Bonds, VRDN (a):
8,700 (Beverly Park Apartments Project), AMT, Series A, 3.60% due 8/01/2018 8,700
12,660 Refunding (Canyon Creek Project), Series C, 3.75% due 12/01/2010 12,660
8,340 Refunding (Mountainback), Series B, 3.75% due 12/01/2010 8,340
3,500 Los Angeles, California, TRAN, UT, 4.50% due 6/19/1997 3,514
25,000 Los Angeles County, California, Local Educational Agency, COP, TRAN,
Series A, 4.75% due 6/30/1997 25,153
31,000 Los Angeles County, California, Metropolitan Transportation Authority,
Revenue Bonds, VRDN, 3.80% due 7/01/2025 (a) (e) 31,000
Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds, VRDN (a):
4,000 3.85% due 7/01/2017 (d) 4,000
20,000 3.85% due 7/01/2018 (b) 20,000
38,100 Refunding (Proposition C--Second Senior Bonds), Series A, 3.65% due
7/01/2020 (b) 38,100
19,555 Los Angeles County, California, Public Works Financing Authority, Lease
Revenue Refunding Bonds, Series A, 4% due 3/01/1997 (b) 19,581
11,300 M-S-R Public Power Agency, California, Revenue Bonds (San Juan Project),
VRDN, Series B, 3.65% due 7/01/2022 (a) (d) 11,300
45,000 Marin County, California, TRAN, 4.75% due 7/01/1997 45,319
Metropolitan Water District (Southern California), CP, Series B:
5,000 3.65% due 10/24/1996 5,000
20,300 3.60% due 12/09/1996 20,300
2,700 Metropolitan Water District (Southern California), Waterworks Revenue
Refunding Bonds, VRDN, Series A, 3.65% due 6/01/2023 (a) (d) 2,700
6,000 Moor Park, California, M/F Mortgage Revenue Refunding Bonds (Le Club
Apartments Project), VRDN, Series A, 3.70% due 11/01/2015 (a) 6,000
14,800 Northern California Power Agency, Public Power Revenue Refunding Bonds
(Geothermal Project No. 3), VRDN, Series A, 3.70% due 7/01/2005 (a) (d) 14,800
Palm Springs, California, Community Redevelopment Agency, COP, VRDN (a):
2,200 Headquarters Hotel 2, 3.75% due 12/01/2014 2,200
1,500 Headquarters Hotel 3, 3.75% due 12/01/2014 1,500
1,500 Headquarters Hotel 4, 3.75% due 12/01/2014 1,500
1,700 Headquarters Hotel 5, 3.75% due 12/01/2014 1,700
1,600 Headquarters Hotel 7, 3.75% due 12/01/2014 1,600
3,700 Headquarters Hotel 8, 3.75% due 12/01/2014 3,700
1,900 Headquarters Hotel 9, 3.75% due 12/01/2014 1,900
1,500 Headquarters Hotel 10, 3.75% due 12/01/2014 1,500
11,470 Pittsburg, California, Mortgage Obligation Bonds, VRDN, Series A, 3.90%
due 12/30/2022 (a) 11,470
7,790 Redlands, California, COP Refunding (Sewer Facilities Project),
VRDN, 3.80% due 9/01/2017 (a) (c) 7,790
Redlands, California, M/F Housing Revenue Bonds, VRDN, Series A (a):
2,900 (Orange Village Apartments Project), AMT, 3.80% due 8/01/2018 2,900
12,500 Refunding (Parkview Terrace Project), 3.70% due 2/01/2016 12,500
4,000 Riverside County, California, COP (Riverside County Public Facilities),
ACES, Series A, 3.50% due 12/01/2015 (a) 4,000
Riverside County, California, Housing Authority, M/F Mortgage Revenue
Bonds, VRDN (a) (f):
3,750 (Emeritus Park), Series B, 3.70% due 8/01/2018 3,750
5,900 (Woodcreek Village), Series D, 3.70% due 8/01/2018 5,900
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1996 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
California $14,200 Roseville, California, Finance Authority, Hospital Lease Revenue Bonds
(concluded) (Roseville Hospital), VRDN, Series A, 3.70% due 10/01/2014 (a) $ 14,200
Sacramento, California, Municipal Utility District, Electric
Revenue Bonds:
26,000 CP, Series I, 3.85% due 10/04/1996 26,000
15,424 CP, Series I, 3.60% due 12/09/1996 15,424
5,760 VRDN, 3.80% due 8/15/2021 (a) (d) 5,760
10,000 Sacramento County, California, TRAN, UT, 4.75% due 10/04/1996 10,001
6,110 San Bernardino County, California, Residential Mortgage Revenue Refunding
Bonds (Ramona Garden), VRDN, Series A, 3.75% due 2/01/2017 (a) 6,110
30,000 San Bernardino County, California, TRAN, 4.50% due 6/30/1997 30,126
3,800 San Diego, California, CP, 3.60% due 12/09/1996 3,800
San Diego, California, IDR, Refunding (San Diego Gas & Electric), CP,
Series A:
1,000 3.55% due 10/09/1996 1,000
5,400 3.50% due 10/10/1996 5,400
2,000 3.65% due 12/09/1996 2,000
5,000 San Diego, California, Local Area Government COP, TRAN, 4.75%
due 10/18/1996 5,002
San Diego, California, M/F Housing Authority Revenue Bonds, VRDN (a):
2,330 (Country Hills), Series A, 3.70% due 8/15/2013 (f) 2,330
7,840 (La Cima Apartments), Series K, 3.70% due 12/01/2008 7,840
17,450 (Nobel Court Apartments), 3.70% due 12/01/2008 17,450
13,000 San Jose, California, M/F Housing Revenue Bonds (Siena at Renaissance),
VRDN, AMT, Series A, 3.90% due 12/01/2029 (a) 13,000
2,000 San Jose--Santa Clara, California, Water Financing Authority, Sewer
Revenue Bonds, VRDN, 3.85% due 11/15/2020 (a) (c) 2,000
10,000 San Leandro, California, M/F Revenue Bonds (Parkside Commons), VRDN,
Series A, 3.70% due 7/15/2018 (a) (f) 10,000
9,400 Santa Clara County, California, M/F Housing Authority, Revenue Refunding
Bonds (Benton Park Central Apartments), VRDN, Series A, 3.75% due
12/15/2025 (a) (f) 9,400
7,000 Santa Clara County, California, TRAN, 4.50% due 8/01/1997 7,035
5,325 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek Apartments
Project), VRDN, AMT, Series A, 3% 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, 3.80%
due 10/01/2017 (a) 3,675
8,600 Southern California Public Power Authority, Revenue Refunding Bonds
(Southern Transmission Project), VRDN, 3.70% due 7/01/2019 (a) (d) 8,600
<PAGE>
Puerto Rico-- 12,000 Puerto Rico Commonwealth, Government Development Bank Revenue Bonds,
0.9% CP, 3.60% due 10/18/1996 12,000
Total Investments (Cost--$1,385,177*)--99.6% 1,385,177
Other Assets Less Liabilities--0.4% 5,279
-----------
Net Assets--100.0% $ 1,390,456
===========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the interest rate in
effect at September 30, 1996.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)FSA Insured.
(f)FNMA Collateralized.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,385,176,798) (Note 1a) $ 1,385,176,798
Cash 95,842
Interest receivable 6,225,777
Prepaid registration fees and other assets (Note 1d) 57,909
---------------
Total assets 1,391,556,326
---------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 545,057
Distributor (Note 2) 345,296
Dividends to shareholders (Note 1e) 287
Beneficial interest redeemed 22 890,662
---------------
Accrued expenses and other liabilities 209,582
---------------
Total liabilities 1,100,244
---------------
Net Assets $ 1,390,456,082
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number
of shares authorized $ 139,138,924
Paid-in capital in excess of par 1,252,248,654
Accumulated realized capital losses--net (Note 4) (931,496)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,391,389,237 shares of
beneficial interest outstanding $ 1,390,456,082
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 24,662,642
Expenses:
Investment advisory fees (Note 2) $ 3,111,928
Distribution fees (Note 2) 880,651
Transfer agent fees (Note 2) 106,320
Accounting services (Note 2) 66,537
Registration fees (Note 1d) 63,524
Custodian fees 42,312
Printing and shareholder reports 29,796
Professional fees 28,459
Trustees' fees and expenses 6,880
Pricing fees 4,371
Other 7,587
---------------
Total expenses 4,348,365
---------------
Investment income--net 20,314,277
Realized Gain on Investments--Net (Note 1c) 10,330
---------------
Net Increase in Net Assets Resulting from Operations $ 20,324,607
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Sept. 30, 1996 March 31, 1996
<PAGE>
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 20,314,277 $ 38,986,274
Realized gain on investments--net 10,330 14,898
--------------- ---------------
Net increase in net assets resulting from operations 20,324,607 39,001,172
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (20,314,277) (38,963,124)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (20,314,277) (38,963,124)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 3,035,471,269 4,504,776,418
Net asset value of shares issued to shareholders in reinvestment
of dividends (Note 1e) 20,314,291 38,962,811
--------------- ---------------
3,055,785,560 4,543,739,229
Cost of shares redeemed (3,086,479,991) (4,290,871,513)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial
interest transactions (30,694,431) 252,867,716
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets (30,684,101) 252,905,764
Beginning of period 1,421,140,183 1,168,234,419
--------------- ---------------
End of period $ 1,390,456,082 $ 1,421,140,183
=============== ===============
See Notes to Financial Statements.
</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 For the
financial statements. Six Months
Ended Sept. 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1996 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Investment income--net .01 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.01) (.03) (.03) (.02) (.02)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.84%* 3.16% 2.66% 1.93% 2.25%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .61%* .64% .63% .62% .63%
========== ========== ========== ========== ==========
Investment income--net 2.85%* 3.11% 2.62% 1.91% 2.22%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $1,390,456 $1,421,140 $1,168,234 $1,225,160 $1,014,800
========== ========== ========== ========== ==========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
<PAGE>
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. These unaudited
financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results
for the interim period presented. All such adjustments are of a
normal recurring nature. 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 and distributions 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>
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., 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.
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.
CMA CALIFORNIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, MLFDS, 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, 1996, the Fund had a net capital loss carryforward of
approximately $942,000, of which $466,000 expires in 2002 and
$476,000 expires in 2003. This amount will be available to offset a
like amount of any future taxable gains.
CMA CALIFORNIA MUNICIPAL MONEY FUND
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
Merrill Lynch 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].
