CMA
CMA MASSACHUSETTS
MUNICIPAL MONEY FUND
Annual Report
March 31, 1994
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 con-
sidered 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 Massachusetts
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1994, CMA Massachusetts Municipal
Money Fund paid shareholders a net annualized yield of 1.74%*. As
of March 31, 1994, the Fund's 7-day yield was 1.59%.
<PAGE>
The Environment
Inflationary expectations changed sharply during the March
quarter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion of the
economy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest 25
basis point (0.25%) increase in short-term interest rates. At the
March 22 meeting of the Federal Open Market Committee, the
Federal Reserve Board again raised the Federal Funds rate by 25
basis points, and also announced the increase.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second increase in the Federal Funds rate was less of a surprise,
investors remained concerned that interest rates would trend
upward sharply. As a result, stock and bond prices continued to
decline through the end of March. The volatility in the US
capital markets was mirrored in international markets. Political
and economic developments, along with concerns of heightened
global inflationary pressures, led to a sell-off in most capital
markets, especially the emerging markets that had appreciated
strongly in 1993.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating
economy. At this time, there is little evidence that the rate of
inflation will increase rapidly. Therefore, although the secular
long-term trend toward lower interest rates may be over, it is
not yet certain whether the pace of economic activity will
accelerate to the point where significant Federal Reserve Board
tightening will be necessary to contain inflation.
Investment Outlook and Strategy
The national economy, as well as that of the Commonwealth of
Massachusetts, continued to improve during the six months ended
March 31, 1994. In addition to the traditional economic base
provided by the healthcare and education sectors, the
Commonwealth of Massachusetts experienced improvements in the
banking and financial services and housing industries, as well as
the biomedical technology field. This growth contributed to the
decline in the seasonally adjusted unemployment rate to 5.9%
through March 1994, which is down from 7.1% in September 1993 and
is slightly below the national average of 6.5%. However, the
merger of two of Massachusetts' largest employers, Massachusetts
General Hospital and Brigham and Women's Hospital, coupled with
potential bank mergers, a declining national defense industry and
rising mortgage rates in the housing industry, could curtail
future gains in employment.
<PAGE>
Recently, the Commonwealth experienced sluggish tax revenue
collections as a result of a very harsh winter and its economic
impact. Despite this temporary phenomenon, the tax revenue stream
for fiscal year 1994 is running more than 7% above last year and
has assisted Governor Weld in proposing a balanced budget of
$16.1 billion for fiscal year 1995. This proposed budget would
eliminate more than $300 million in Massachusetts taxes,
including a reduction of the state income tax to 5.85%, and at
the same time increase the state's reserve fund to $325 million
from $310 million. Despite various proposed spending and tax
cuts, Governor Weld proposed increasing the amount of money
allocated to education by $214 million. These increased revenue
flows have greatly reduced the need for the Commonwealth and its
cities and towns to borrow in the short-term market for working
capital needs. The Commonwealth addressed its short-term market
financing needs by reissuing $240 million in notes which will
mature in November of 1994. In addition, the Commonwealth had
$170 million in tax-exempt commercial paper outstanding as of
March 31, 1994. Short-term note issuance by the various
Massachusetts municipalities increased approximately 6% to $533
million over the comparable period last year. Yields on the
outstanding Massachusetts notes as well as AA-rated local
municipal notes declined in early January to the 2.00% range.
However, since then yields have increased to the 3.00%--3.20%
range for securities with one-year maturities as a result of the
tightening action by the Federal Reserve Board.
CMA Massachusetts Municipal Money Fund pursued a somewhat
aggressive strategy at the onset of the period, extending its
average portfolio to the 75-day range in anticipation of seasonal
inflows. The Fund was able to purchase a limited amount of longer
dated short-term notes as well as commercial paper, while
reducing its exposure to lower-yielding variable rate demand
notes. Since then, actions by the Federal Reserve Board combined
with the anticipated tax related seasonal outflows in April have
prompted the Fund to pursue a more defensive strategy by allowing
the Fund's average portfolio maturity to decline to the 55-day
range. Diversification continues to be a challenge because of a
limited availability of high-quality local municipal note
issuance. We continue to closely monitor credit quality while
seeking to offer shareholders an attractive tax-exempt yield.
<PAGE>
We thank you for your support of CMA Massachusetts 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
April 29, 1994
Portfolio Abbreviations for CMA Massachusetts Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
DDN Daily Demand Notes
HFA Housing Finance Authority
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
S/F Single-Family
VRDN Variable Rate Demand Notes
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Massachusetts-- Boston, Massachusetts, Tender Option, VRDN (a):
99.2% $ 2,000 Series MGT 11A, 2.40% due 2/01/2005 $ 2,000
3,000 Series MGT 11B, 2.40% due 2/01/2006 3,000
700 Boston, Massachusetts, Water & Sewer Commission Revenue Bonds, VRDN,
Series A, 1.90% due 11/01/2015 (a) 700
1,975 Brockton, Massachusetts, Area Transit Authority, RAN, 2.75% due 7/22/1994 1,978
2,500 Brockton, Massachusetts, RAN, 4% due 6/10/1994 2,505
Cape Ann, Massachusetts, Transit Authority:
350 BAN, 2.90% due 11/10/1994 351
600 RAN, 2.90% due 11/10/1994 601
2,222 Cape Cod, Massachusetts, Regional Transit Authority, RAN, 3% due 7/01/1994 2,226
2,000 Clipper Tax Exempt Trust, Massachusetts, Class A, VRDN, 2.18%
due 10/17/2002 (a) 2,000
6,500 Eagle Tax Exempt Trust, Massachusetts, Class A, VRDN, Series 93-J, 2.49%
due 8/01/2005 (a) 6,500
<PAGE> 1,895 Edgartown, Massachusetts, BAN, 3% due 8/18/1994 1,898
3,400 Fitchburg, Massachusetts, Industrial Development Financing Authority
Revenue Bonds (Netstal Machinery Project), VRDN, AMT, 2.60% due 12/23/2007 (a) 3,400
7,000 Floating Rate Trust Certificate, Massachusetts State, Series 1993 B,
2.65% due 4/11/1994 (a) 7,000
8,500 Massachusetts Bay Transportation Authority Revenue Bonds (General
Transportation System), 1984 Series A, 2.75% due 9/01/1994 8,500
2,000 Massachusetts State Health and Educational Facilities Authority Revenue Bonds
(Boston University), CP, Series H, 2.40% due 4/07/1994 2,000
Massachusetts State Health and Educational Facilities Authority Revenue
Bonds, VRDN (a):
2,600 (Brigham and Women's Hospital), Series A, 2.10% due 7/01/2017 2,600
700 (Capital Assets Program), Series A, 2.30% due 1/01/2001 700
800 (Capital Assets Program), Series C, 2.80% due 7/01/2005 800
3,100 (Capital Assets Program), Series D, 2.15% due 1/01/2035 3,100
5,200 (Capital Assets Program), Series E, 2.10% due 1/01/2035 5,200
1,760 (Harvard University), Series I, 2.10% due 2/01/2016 1,760
5,000 (Massachusetts Institute of Technology), Series G, 2% due 7/01/2021 5,000
300 (Newbury College), Series A, 2.20% due 11/01/2018 300
2,000 (Wellesley College), Series B, 1.85% due 7/01/2022 2,000
100 (Williams College), DDN, Series B, 2.80% due 8/01/2014 100
Massachusetts State HFA, S/F Housing Revenue Bonds:
10,000 Series 23, 2.75% due 6/01/1994 10,000
3,000 Series 25, 2.95% due 9/01/1994 3,000
</TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Massachusetts $ 2,500 Massachusetts State Industrial Finance Agency, Cultural, Health and Educational
(concluded) Revenue Bonds (Berkshire Project), VRDN, 2.25% due 9/01/2020 (a) $ 2,500
2,200 Massachusetts State Industrial Finance Agency, Health Care Facility Revenue
Bonds (Beverly Enterprises, Inc.), DDN, 2.85% due 4/01/2009 (a) 2,200
2,055 Massachusetts State Industrial Finance Agency, Industrial Revenue Refunding
Bonds (Easy Day Project), VRDN, Series A, 2.35% due 7/01/2006 (a) 2,055
4,000 Massachusetts State Industrial Finance Agency, PCR (Holyoke Water & Power
Company Project), VRDN, AMT, 2.45% due 12/01/2020 (a) 4,000
Massachusetts State Industrial Finance Agency, PCR, Refunding (New England
Power Company Project), CP:
2,000 2.40% due 4/22/1994 2,000
2,300 2.55% due 5/06/1994 2,300
3,000 2.60% due 5/10/1994 3,000
2,000 2.55% due 5/12/1994 2,000
7,400 Massachusetts State Industrial Finance Agency, Resource Recovery Revenue Bonds
(Ogden Haverhill), VRDN, AMT, Series B, 2.30% due 12/01/2011 (a) 7,400
3,900 Massachusetts State Industrial Finance Agency, Revenue Bonds (New England
Deaconess Project), VRDN, 2.20% due 4/01/2023 (a) 3,900
<PAGE> 1,000 Massachusetts State Industrial Finance Agency, Revenue Bonds
(Williston-Northampton School), VRDN, Series A, 2.20% due 4/01/2010 (a) 1,000
1,145 Massachusetts State Industrial Finance Agency, Revenue Refunding Bonds
(Museum of Science), 2.75% due 11/01/1994 1,148
800 Massachusetts State Industrial Finance Agency, Revenue Refunding Bonds
(Showa Women's Institute Inc.), DDN, 2.90% due 3/15/2004 (a) 800
900 Merrimack Valley, Massachusetts, Regional Transit Authority, BAN,
2.75% due 10/28/1994 902
2,400 Montachusett, Massachusetts, Regional Transit Authority, RAN, 2.75%
due 7/01/1994 2,401
2,300 New Bedford, Massachusetts, BAN, 3.75% due 8/12/1994 2,308
5,500 North Shore, Massachusetts, Regional Vocational School District, BAN,
3.15% due 7/08/1994 5,505
Pioneer Valley, Massachusetts, Transit Authority, RAN:
1,000 2.90% due 8/12/1994 1,000
2,000 3.10% due 8/12/1994 2,002
Southeastern Regional Transit Authority, Massachusetts:
1,350 BAN, 2.69% due 5/24/1994 1,350
2,975 RAN, 3% due 9/20/1994 2,981
3,600 Springfield, Massachusetts, RAN, 3.20% due 6/30/1994 3,607
1,600 Stoughton, Massachusetts, RAN, 2.50% due 5/06/1994 1,600
Worcester, Massachusetts, BAN:
2,500 2.99% due 8/24/1994 2,503
4,900 3.09% due 8/24/1994 4,907
5,000 Worcester, Massachusetts, Regional Transit Authority, RAN, 3% due 6/24/1994 5,004
Total Investments (Cost--$149,592*)--99.2% 149,592
Other Assets Less Liabilities--0.8% 1,212
--------
Net Assets--100.0% $150,804
========
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rates shown are the rates in effect at March 31, 1994.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$149,592,030) (Note 1a) $ 149,592,030
Cash 114,527
Interest receivable 1,103,378
Deferred organization expenses (Note 1d) 13,263
Prepaid registration fees and other assets (Note 1d) 142,046
-------------
Total assets 150,965,244
-------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 65,819
Distributor (Note 2) 26,887 92,706
------------
Accrued expenses and other liabilities 68,244
-------------
Total liabilities 160,950
-------------
Net Assets $ 150,804,294
=============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 15,081,564
Paid-in capital in excess of par 135,734,078
Undistributed investment income--net 7,020
Accumulated realized capital losses--net (Note 4) (18,368)
-------------
Net Assets--Equivalent to $1.00 per share based on 150,815,642 shares of beneficial
interest outstanding $ 150,804,294
=============
</TABLE>
<PAGE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1994
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 3,615,058
Expenses:
Investment advisory fees (Note 2) $ 721,970
Distribution fees (Note 2) 179,349
Accounting services (Note 2) 58,813
Professional fees 36,717
Registration fees (Note 1d) 35,605
Printing and shareholder reports 32,896
Transfer agent fees (Note 2) 28,770
Custodian fees 15,271
Amortization of organization expenses (Note 1d) 9,982
Pricing fees 5,829
Trustees' fees and expenses 1,574
Other 1,185
------------
Total expenses 1,127,961
-------------
Investment income--net 2,487,097
Realized Loss on Investments--Net (Note 1c) (7,077)
-------------
Net Increase in Net Assets Resulting from Operations $ 2,480,020
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS For the Year Ended March 31,
1994 1993
Increase (Decrease) in Net Assets:
<S> <C> <C>
Operations:
Investment income--net $ 2,487,097 $ 2,595,827
Realized loss on investments--net (7,077) (4,332)
------------- -------------
Net increase in net assets resulting from operations 2,480,020 2,591,495
------------- -------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (2,487,097) (2,595,668)
Realized gain on investments--net -- (3,571)
------------- -------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (2,487,097) (2,599,239)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 770,729,466 542,195,660
Net asset value of shares issued to shareholders in reinvestment
of dividends (Note 1e) 2,487,010 2,599,306
------------- -------------
773,216,476 544,794,966
Cost of shares redeemed (754,707,003) (528,825,217)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 18,509,473 15,969,749
------------- -------------
Net Assets:
Total increase in net assets 18,502,396 15,962,005
Beginning of year 132,301,898 116,339,893
------------- -------------
End of year* $ 150,804,294 $ 132,301,898
============= =============
<FN>
*Undistributed investment income--net $ 7,020 $ 7,020
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived July 30,
from information provided in the financial statements. 1990++ to
For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992 1991
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Investment income--net .02 .02 .04 .03
-------- -------- -------- --------
Total from investment operations .02 .02 .04 .03
-------- -------- -------- --------
Less dividends:
Investment income--net (.02) (.02) (.04) (.03)
-------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Investment Return 1.74% 2.20% 3.66% 5.04%*
======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .66% .66% .73% .60%*
======== ======== ======== ========
Expenses, net of reimbursement .78% .78% .85% .72%*
======== ======== ======== ========
Expenses .78% .78% .87% .97%*
======== ======== ======== ========
Investment income--net 1.72% 2.15% 3.56% 4.92%*
======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $150,804 $132,302 $116,340 $ 84,613
======== ======== ======== ========
<FN>
++Commencement of Operations.
*Annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Massachusetts Municipal Money Fund (the "Fund") is part of
CMA Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end investment management company. The
following is a summary of significant accounting policies
followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be
adjusted. In the case of a floating rate instrument, the
remaining maturity is the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are
entered into (the trade dates). Interest income (including
amortization of premium and discount) is recognized on the
accrual basis. Realized gains and losses on security transactions
are determined on the identified cost basis.
(d) Deferred organization expenses and prepaid registration
fees--Deferred organization expenses are charged to expense on a
straight-line basis over a five-year period. Prepaid registration
fees are charged to expense as the related shares are issued.
(e) Dividends to shareholders--The Fund declares dividends daily
and reinvests daily such dividends (net of non-resident alien tax
withheld) in additional Fund shares at net asset value. Dividends
are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net
realized capital gains, if any, are normally distributed annually
after deducting prior years' loss carryforward. The Fund may
distribute capital gains more frequently than annually in order
to maintain the Fund's net asset value at $1.00 per share.
<PAGE>
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and
certain other services necessary to the operations of the Fund.
For such services, the Fund pays a monthly fee based upon the
average daily value of the Fund's net assets at the following
annual rates: 0.50% of the Fund's average daily net assets, not
exceeding $500 million; 0.425% of the average daily net assets in
excess of $500 million but not exceeding $1 billion; and 0.375% of
the 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 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 Investment Adviser during any year which will
cause such expenses to exceed the pro rata expense limitation at
the time of such payment.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of
1940, Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S")
receives a distribution fee from the Fund at the end of each
month at the annual rate of 0.125% of the average daily net
assets of the Fund. The distribution fee is to compensate MLPF&S
financial consultants and other directly involved branch office
personnel for selling shares of the Fund and for providing direct
personal services to shareholders. The distribution fee is not
compensation for the administrative and operational services
rendered to the Fund by MLPF&S in processing share orders and
administering shareholder accounts.
<PAGE>
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary
of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, MLIM, MLPF&S, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes
in Net Assets for net proceeds from sale of shares and cost of
shares redeemed, respectively, since shares are recorded at $1.00
per share.
4. Capital Loss Carryforward:
As of March 31, 1994, the Fund had a net capital loss
carryforward of approximately $11,000, of which $4,000 expires in
2001 and $7,000 expires in 2002. This amount will be available to
offset like amounts of any future taxable gains.
<PAGE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Massachusetts 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
Massachusetts Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1994, the related statements of
operations for the year then ended and changes in net assets
for each of the years in the two-year period then ended, and
the financial highlights for each of the years in the three-year
period then ended and the period July 30, 1990 (commencement of
operations) to March 31, 1991. 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, 1994 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 Massachusettes Municipal Money Fund of
CMA Multi-State Municipal Series Trust as of March 31, 1994, the
results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche
Princeton, New Jersey
April 29, 1994
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION
All of the net investment income distributions paid daily by CMA
Massachusetts Municipal Money Fund of CMA Multi-State Municipal
Series Trust during the taxable year ended March 31, 1994 qualify
as tax-exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributions during
the Fund's taxable year ended March 31, 1994.
Please retain this information for your records.
CMA MASSACHUSETTS
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
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].
