CMA
CMA CALIFORNIA
MUNICIPAL MONEY FUND
Annual Report
March 31, 1996
Merrill Lynch
BULL LOGO
<PAGE>
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
Transfer Agent
Merrill Lynch 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. 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
TO OUR SHAREHOLDERS:
For the six-month period ended March 31, 1996, CMA California
Municipal Money Fund paid shareholders a net annualized yield of
3.16%*. As of March 31, 1996, the Fund's 7-day yield was 2.72%.
The Environment
As 1995 drew to a close and 1996 began, it appeared that the US
economy was losing momentum. Lackluster retail sales, increases in
initial unemployment claims (along with weak job and income growth),
and evidence of slowing in the manufacturing sector all suggested
that the rate of economic growth was slowing, with some forecasters
even suggesting the possibility of an imminent recession. With
inflationary pressures well subdued, these signs of economic
weakness led the Federal Reserve Board to follow a more
accommodative monetary policy.
However, investor perceptions regarding the rate of future economic
growth changed dramatically with the report of stronger-than-
expected employment data for February and March. As a result, the
consensus outlook regarding the direction of business activity
shifted from expectations of weakness to anticipation of a revival
in growth of the economy. Long-term interest rates rose, and the
Federal Reserve Board left monetary policy on hold.
Investors are likely to continue to focus on the probable direction
of economic activity and Federal Reserve Board monetary policy in
the weeks ahead. At this time, inflationary pressures do not seem to
be building and the manufacturing sector is still relatively weak,
which suggest that the economy is not on the verge of overheating.
Nevertheless, it is likely that any further indication of stronger
economic activity in the weeks ahead may add to investor concerns
that accelerating economic activity could lead to higher interest
rates.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
<PAGE>
Investment Outlook and Strategy
During the six-month period ended March 31, 1996, the California
economy continued to outperform expectations. Last year was the
first time since 1989 that California's job growth rate exceeded the
nation's, and that pace is projected to continue through 1996 and
into 1997. However, California's unemployment rate remained at 7.6%
in February. In 1995, California's non-farm jobs level rose 306,400.
Although job losses are continuing in the financial services,
defense and aerospace sectors, the pace is slowing. These losses
were offset by employment gains in the computer services and
software sectors. Furthermore, many of the State's new jobs are in
relatively high-paying industries, such as international trade,
commercial electronics, tourism, and entertainment. The California
housing market also showed signs of sustainable growth. Existing
home sales rose 24.7% in February from a year earlier as the State's
economy improved.
Since the release of Governor Wilson's proposed budget for fiscal
1996-1997, the State's credit rating remained stable according to
Moody's Investors Service, Inc. (Moody's). This stability was helped
by California's positive economic and financial trends and a third
consecutive year of surplus operations. However, these advantages
were offset by the expected persistence of narrow reserves caused by
the continued stress between revenues and expenditures. Moody's
rates the State's general obligation debt A1.
During the six months ended March 31, 1996, the new issuance of
short-term California debt totaled approximately $1.2 billion, a
substantial decrease from the $7.0 billion in debt issued during the
previous six-month period. As planned, the State issued $2.0 billion
in Revenue Anticipation Notes (RANs) in April 1996 to meet its cash
needs for the spring quarter, which will be retired in late June
1996. During fiscal year 1996-1997, California plans to borrow
approximately $3.2 billion in RANs that will be issued in July 1996
and mature in June 1997.
The net assets of CMA California Municipal Money Fund rose
substantially during this six-month period from approximately $1.2
billion at October 1, 1995 to $1.4 billion by March 31, 1996, a 15%
increase. We maintained the average portfolio maturity of CMA
California Municipal Money Fund in the 30-day range as we continued
to extend the Fund's maturity by investing in tax-exempt commercial
paper that outperformed the variable-rate demand sector of the
market. The Fund held a position of approximately 45% in tax-exempt
commercial paper at the end of the quarter.
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.
<PAGE>
Sincerely,
(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
April 29, 1996
Portfolio Abbreviations for CMA California Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
COP Certificates of Participation
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Financing Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAW Revenue Anticipation Warrants
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 MARCH 31, 1996 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California-- $ 3,000 Alameda County, California, IDA, IDR, Refunding (Hoover University
92.0% Inc.Project), VRDN, 3.15% due 6/01/2004 (a) $ 3,000
California Health Facilities Financing Authority Revenue Bonds,
VRDN (a):
14,000 (Floating Pool Program), 3.10% due 9/01/2020 14,000
6,645 (Huntington Memorial Hospital), 2.85% due 11/01/2010 6,645
1,500 (Pooled Loan Program), Series 85-B, 3.10% due 10/01/2010 (c) 1,500
2,700 (Pooled Loan Program), Series A, 3.10% due 6/01/2007 2,700
5,000 Refunding (Catholic West), Series B, 3.05% due 7/01/2005 (b) 5,000
7,200 Refunding (Catholic West), Series D, 3.05% due 7/01/2018 (b) 7,200
7,600 (Scripps Memorial Hospital), Series A, 3.10% due 12/01/2005 (b) 7,600
5,830 (Scripps Memorial Hospital), Series B, 3.10% due 12/01/2015 (b) 5,830
10,000 California HFA, Multi-Unit Rental Housing Revenue Bonds, Series A,
3.20%due 5/01/1996 (b) 10,000
California Pollution Control Financing Authority, PCR:
700 Refunding (Shell Oil Company Project), VRDN, Series B, 3.20%
due 10/01/2011 (a) 700
1,500 (Southern California Edison), CP, Series C, 3.60% due 4/08/1996 1,500
California Pollution Control Financing Authority, PCR, Refunding
(Pacific Gas & Electric), CP:
5,500 AMT, Series A, 3.50% due 4/08/1996 5,500
7,770 AMT, Series A, 3.15% due 4/10/1996 7,770
15,000 AMT, Series A, 3.05% due 8/01/1996 15,000
27,600 AMT, Series B, 3.45% due 4/11/1996 27,600
12,000 AMT, Series B, 3.40% due 7/25/1996 12,000
14,100 AMT, Series B, 3.35% due 8/08/1996 14,100
22,900 AMT, Series B, 3.55% due 8/15/1996 22,900
18,900 Series D, 3.60% due 4/12/1996 18,900
15,100 Series E, 3.10% due 4/09/1996 15,100
23,400 Series E, 3.15% due 4/09/1996 23,400
20,000 Series E, 3.35% due 7/25/1996 20,000
27,300 Series F, 3.25% due 4/12/1996 27,300
20,000 Series F, 3.10% due 4/16/1996 20,000
California Pollution Control Financing Authority, Resource Recovery
Revenue Bonds, VRDN, AMT (a):
18,400 (Atlantic Richfield Company Project), Series A, 3.25% due
12/01/2024 18,400
18,200 (Delano Project), 3% due 8/01/2019 18,200
5,900 (Delano Project), 3% due 8/01/2019 5,900
19,800 (Delano Project), Series 1991, 3% due 8/01/2019 19,800
1,600 (Honey Lake Power Project), 3% due 9/01/2018 1,600
12,100 (Honey Lake Power Project), 3% due 9/01/2018 12,100
15,300 Refunding (Ultra Power Malaga Project), Series A, 3% due 4/01/2017 15,300
2,900 Refunding (Ultra Power Malaga Project), Series B, 3% due 4/01/2017 2,900
1,300 Refunding (Ultra Power Rocklin Project), Series A, 3% due 6/01/2017 1,300
6,600 Refunding (Ultra Power Rocklin Project), Series B, 3% due 6/01/2017 6,600
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1996 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California California Pollution Control Financing Authority, Solid Waste
(continued) Disposal Revenue Bonds, VRDN (a):
$ 5,000 (North County Recycling Center), Series B, 3.10% due 7/01/2017 $ 5,000
52,100 (Shell Oil Co.--Martinez Project), AMT, Series A, 3.20% due
10/01/2024 52,100
11,800 (Shell Oil Co.--Martinez Project), AMT, Series B, 3.20% due
12/01/2024 11,800
25,000 California Public Capital Improvements Financing Authority Revenue
Bonds(Pooled Loan Project), Series D, 3.40% due 6/15/1996 25,000
10,000 California State, GO, VRDN, 3.47% due 11/01/2020 (a) 10,000
97,965 California State, RAW, Series C, 5.75% due 4/25/1996 98,072
1,800 California Statewide Community Development Authority Revenue Bonds
(Sutter Health Obligation Group), VRDN, COP, 3.25% due 7/01/2015 (a)(d) 1,800
5,700 California Statewide Community Development Authority, Solid Waste
Facility Revenue Bonds (Chevron United States Inc. Project), VRDN,
AMT, 3.20% due 12/15/2024 (a) 5,700
Chula Vista, California, IDR (San Diego Gas & Electric Co.), CP, AMT,
Series D:
20,000 3.30% due 4/04/1996 20,000
10,000 3.25% due 4/09/1996 10,000
10,000 3.70% due 4/09/1996 10,000
20,000 3.25% due 4/10/1996 20,000
27,500 Clovis, California, Unified School District, TRAN, UT, 4.50% due
7/05/1996 27,537
2,200 Contra Costa County, California, Housing Authority, M/F Mortgage
Revenue Bonds (Lakeshore Apartments), VRDN, Series A, 3.15% due
11/15/2012 (a) 2,200
1,500 Delmar, California, Racetrack Authority, BAN, CP, Series 1993, 3.20%
due 4/08/1996 1,500
Eagle Tax Exempt Trust, VRDN (a):
9,500 3.47% due 2/01/2006 9,500
18,400 Series 1994 C-6, 3.47% due 8/01/2017 18,400
14,800 Series 1994 C-7, 3.47% due 8/01/2023 14,800
East Bay, California, Municipal Utility District, Wastewater
Treatment System Revenue Bonds, CP:
16,800 3.10% due 4/08/1996 16,800
1,800 3.20% due 4/08/1996 1,800
5,000 East Yolo, California, Community Services District, Revenue
Refunding Bonds, 7.25% due 6/01/1996 (c)(e) 5,126
10,400 Eastern Municipal Water District, California, Water and Sewer
Revenue Refunding Bonds, VRDN, COP, Series B, 3% due 7/01/2020 (a)(c) 10,400
20,000 Floating Rate Trust Certificates, VRDN, Series 1992 H, 3.65% due
10/02/1998 (a)(d) 20,000
8,050 Fontana, California, M/F Housing Revenue Bonds (Springtime Apartments
Project), VRDN, Series A, 3.35% due 12/01/2016 (a) 8,050
Golden Empire Schools Financing Authority, California, Revenue
Refunding Bonds, VRDN (a):
9,100 (Golden Empire Project), Series B, 3.15% due 12/01/2024 9,100
11,400 (Kern High School District), Series A, 3.15% due 12/01/2024 11,400
13,000 Hayward, California, M/F Housing Revenue Bonds (Shorewood Apartments),
VRDN, Series A, 3.25% due 8/01/2014 (a)(c) 13,000
2,435 Kern County, California, Housing Authority, Mortgage Obligation Bonds,
VRDN, Series A, 3.45% due 12/30/2027 (a) 2,435
18,985 Loma Linda, California, M/F Housing Revenue Bonds (Loma Linda Springs
Apartments), VRDN, 3.30% due 7/01/2019 (a) 18,985
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1996 (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) $17,000 3.30% due 4/04/1996 $ 17,000
10,000 3.30% due 4/08/1996 10,000
6,500 3.25% due 4/09/1996 6,500
29,000 3.25% due 4/11/1996 29,000
40,000 Long Beach, California, TRAN, 4.50% due 9/19/1996 40,100
Los Angeles, California, Harbor Department Revenue Bonds
(Port of Los Angeles), CP, AMT, Series B:
16,000 3.10% due 4/08/1996 16,000
21,000 3.15% due 4/08/1996 21,000
13,000 3.65% due 4/08/1996 13,000
1,500 3.70% due 4/08/1996 1,500
8,700 Los Angeles, California, M/F Housing Revenue Bonds (Beverly Park
Apartments Project), VRDN, AMT, Series A, 3.15% due 8/01/2018 (a) 8,700
Los Angeles, California, M/F Housing Revenue Refunding Bonds,
VRDN (a):
12,660 (Canyon), Series C, 3.15% due 12/01/2010 12,660
8,340 (Mountainback), Series B, 3.15% due 12/01/2010 8,340
2,000 Los Angeles County, California, Metropolitan Transportation Authority,
Revenue Bonds, CP, Series A, 3.15% due 4/09/1996 2,000
4,000 Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Bonds, VRDN, 3.50% due 7/01/2017 (a)(d) 4,000
24,300 Los Angeles County, California, Metropolitan Transportation Authority,
Sales Tax Revenue Refunding Bonds (Proposition C--Second Senior
Bonds),VRDN, Series A, 3% due 7/01/2020 (a)(b) 24,300
3,700 M-S-R Public Power Agency, California, Revenue Bonds (San Juan
Project),VRDN, Series B, 3.05% due 7/01/2022 (a)(d) 3,700
20,300 Metropolitan Water District (Southern California), CP, Series B, 3.25%
due 4/24/1996 20,300
6,000 Moor Park, California, M/F Mortgage Revenue Refunding Bonds (Le Club
Apartments Project), VRDN, Series A, 3.10% due 11/01/2015 (a) 6,000
Palm Springs, California, Community Redevelopment Agency, COP, VRDN (a):
2,200 Headquarters Hotel 2, 3.25% due 12/01/2014 2,200
1,500 Headquarters Hotel 3, 3.25% due 12/01/2014 1,500
1,500 Headquarters Hotel 4, 3.25% due 12/01/2014 1,500
1,700 Headquarters Hotel 5, 3.25% due 12/01/2014 1,700
1,600 Headquarters Hotel 7, 3.25% due 12/01/2014 1,600
3,700 Headquarters Hotel 8, 3.25% due 12/01/2014 3,700
1,900 Headquarters Hotel 9, 3.25% due 12/01/2014 1,900
1,500 Headquarters Hotel 10, 3.25% due 12/01/2014 1,500
11,470 Pittsburg, California, Mortgage Obligation Bonds, VRDN, Series A,
3.40%due 12/30/2022 (a) 11,470
2,900 Redlands, California, M/F Housing Revenue Bonds (Orange Village
Apartments), VRDN, AMT, Series A, 3.35% due 8/01/2018 (a) 2,900
Riverside County, California, Housing Authority, M/F Mortgage Revenue
Bonds, VRDN (a):
3,750 (Emeritus Park), Series B, 3.15% due 8/01/2018 3,750
6,000 (Woodcreek Village), Series D, 3.15% due 8/01/2018 6,000
</TABLE>
<PAGE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1996 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
California $14,200 Roseville, California, Finance Authority, Hospital Lease Revenue
(concluded) Bonds(Roseville Hospital), VRDN, Series A, 3.10% due 10/01/2014 (a) $ 14,200
36,667 Sacramento, California, Municipal Utility District, Electric
Revenue Bonds, CP, Series I, 3.50% due 4/08/1996 36,667
6,110 San Bernardino County, California, Residential Mortgage Revenue
Refunding Bonds (Ramona Garden), VRDN, Series A, 3.15% due
2/01/2017 (a) 6,110
5,400 San Diego, California, IDR, Refunding (San Diego Gas & Electric),
CP,Series A, 3.20% due 4/11/1996 5,400
5,000 San Diego, California, Local Area Government COP, TRAN, 4.75% due
10/18/1996 5,016
San Diego, California, M/F Housing Authority Revenue Bonds, VRDN (a):
2,330 (Country Hills), Series A, 3.15% due 8/15/2013 2,330
8,035 (La Cima Apartments), Series K, 3.05% due 12/01/2008 8,035
18,000 (Nobel Court Apartments), 3.05% due 12/01/2008 18,000
3,800 San Diego County, California, Regional Transportation Commission
Sales Tax Revenue Bonds, CP, 3.35% due 4/11/1996 3,800
7,085 San Francisco City and County, California, TRAN, 4.75% due 9/19/1996 7,114
12,700 San Jose, California, Redevelopment Agency, Tax Allocation Refunding
Bonds (Merged Area Redevelopment Project), Series A, 7.80% due
8/01/1996 (e) 13,122
2,000 San Jose--Santa Clara, California, Water Financing Authority, Sewer
Revenue Bonds, VRDN, 3.50% due 11/15/2020 (a) 2,000
25,000 San Juan, California, Unified School District, TRAN, 4.50% due
9/26/1996 25,076
10,000 San Leandro, California, M/F Revenue Bonds (Parkside Commons), VRDN,
Series A, 3.15% due 7/15/2018 (a) 10,000
5,325 Santa Rosa, California, M/F Housing Revenue Bonds (Oak Creek
Apartments Project), VRDN, AMT, Series A, 3.35% 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, 3.35% due
10/01/2017 (a) 3,675
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank Revenue Bonds, CP:
7.2% 10,600 3.45% due 4/03/1996 10,600
8,600 2.90% due 4/04/1996 8,600
22,000 3.15% due 4/08/1996 22,000
24,000 3.20% due 4/08/1996 24,000
27,675 3.30% due 4/17/1996 27,675
9,300 3% due 4/22/1996 9,300
Total Investments (Cost--$1,409,715*)--99.2% 1,409,715
Other Assets Less Liabilities--0.8% 11,425
-----------
Net Assets--100.0% $ 1,421,140
===========
<PAGE>
<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 March 31, 1996.
(b)MBIA Insured.
(c)FGIC Insured.
(d)AMBAC Insured.
(e)Prerefunded.
*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 MARCH 31, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,409,715,217) (Note 1a) $ 1,409,715,217
Cash 86,334
Receivables:
Interest $ 11,213,093
Securities sold 1,200,000 12,413,093
---------------
Prepaid registration fees and other assets (Note 1d) 53,995
---------------
Total assets 1,422,268,639
---------------
Liabilities:
Payables:
Investment adviser (Note 2) 497,182
Distributor (Note 2) 428,687
Dividends to shareholders (Note 1e) 302 926,171
---------------
Accrued expenses and other liabilities 202,285
---------------
Total liabilities 1,128,456
---------------
Net Assets $ 1,421,140,183
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of
shares authorized $ 142,208,367
Paid-in capital in excess of par 1,279,873,642
Accumulated realized capital losses--net (Note 4) (941,826)
---------------
<PAGE>
Net Assets--Equivalent to $1.00 per share based on 1,422,083,668 shares
of beneficial interest outstanding $ 1,421,140,183
===============
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1996
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 47,014,483
Expenses:
Investment advisory fees (Note 2) $ 5,570,525
Distribution fees (Note 2) 1,565,337
Transfer agent fees (Note 2) 220,014
Accounting services (Note 2) 119,888
Registration fees (Note 1d) 89,413
Custodian fees 79,956
Printing and shareholder reports 74,364
Professional fees 60,523
Pricing fees 13,774
Trustees' fees and expenses 13,244
Other 221,171
---------------
Total expenses 8,028,209
---------------
Investment income--net 38,986,274
Realized Gain on Investments--Net (Note 1c) 14,898
---------------
Net Increase in Net Assets Resulting from Operations $ 39,001,172
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year
Ended March 31,
1996 1995
<PAGE>
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 38,986,274 $ 31,434,272
Realized gain (loss) on investments--net 14,898 (508,031)
--------------- ---------------
Net increase in net assets resulting from operations 39,001,172 30,926,241
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (38,963,124) (31,420,688)
--------------- ---------------
Net decrease in net assets resulting from dividends
to shareholders (38,963,124) (31,420,688)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 4,504,776,418 4,208,416,998
Net asset value of shares issued to shareholders in reinvestment
of dividends (Note 1e) 38,962,811 31,421,185
--------------- ---------------
4,543,739,229 4,239,838,183
Cost of shares redeemed (4,290,871,513) (4,296,269,504)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial
interest transactions 252,867,716 (56,431,321)
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets 252,905,764 (56,925,768)
Beginning of year 1,168,234,419 1,225,160,187
--------------- ---------------
End of year* $ 1,421,140,183 $ 1,168,234,419
=============== ===============
<FN>
*Undistributed investment income-- net (Note 1f) $ -- $ 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: 1996 1995 1994 1993 1992
<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 .03 .02 .02 .03
---------- ---------- ---------- ---------- ----------
Total from investment operations .03 .03 .02 .02 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.02) (.02) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 3.16% 2.66% 1.93% 2.25% 3.48%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .64% .63% .62% .63% .63%
========== ========== ========== ========== ==========
Investment income--net 3.11% 2.62% 1.91% 2.22% 3.42%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,421,140 $1,168,234 $1,225,160 $1,014,800 $1,033,423
========== ========== ========== ========== ==========
See Notes to Financial Statements.
</TABLE>
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.
<PAGE>
(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.
(f) Reclassification--Generally accepted accounting principles
require that certain components of net assets be reclassified to
reflect permanent differences between financial reporting and tax
purposes. Accordingly, current year's permanent book/tax differences
of $36,734 and $1,659 have been reclassified from undistributed net
investment income and paid-in capital in excess of par,
respectively, to accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset value
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., Inc. ("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.
CMA CALIFORNIA 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 the 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 less is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
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.
<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, 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.
<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, 1996, 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, 1996 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 California Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1996, 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.
<PAGE>
Deloitte & Touche LLP
Princeton, New Jersey
April 30, 1996
</AUDIT-REPORT>
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 its taxable year ended March 31, 1996 qualify as tax-
exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
