CMA
CMA MASSACHUSETTS
MUNICIPAL MONEY FUND
Annual Report
March 31, 1995
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.
CMA Massachusetts
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA Massachusetts Municipal Money
Fund paid shareholders a net annualized yield of 2.46%*. As of March
31, 1995, the Fund's 7-day yield was 3.17%.
The Environment
During the six months ended March 31, 1995, the perception that the
US economy was overheating and inflationary pressures were in-
creasing 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.
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.
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.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Investment Outlook & Strategy
Interest rates on short-term securities finished the six-month
period ended March 31, 1995 higher than they were at the outset of
the period, although they experienced a good deal of volatility
during that time. The restrictive monetary policy that the Federal
Reserve Board initiated in February 1994 was maintained in the six-
month period ended March 31, 1995. On November 15, 1994, the Federal
Reserve Board made its most aggressive move of the cycle by hiking
both the Federal Funds rate and the discount rate 75 basis points
(0.75%) to 5.50% and 4.75%, respectively.
<PAGE>
The Federal Reserve Board followed this move with a 50 basis point
hike on February 1, 1995, making it the seventh move of the cycle
and doubling the Federal Funds rate to its current level of 6.00%.
The first half of the March period was characterized by rising short-
term interest rates as investors drove rates up in anticipation of
additional Federal Reserve Board actions. However, the larger-than-
expected increase in the Federal Funds rate in November 1994 caused
investors to believe that the Federal Reserve Board would achieve
the elusive soft landing of the US economy, thus setting the stage
for a rally in US financial markets which drove interest rates
sharply lower. For instance, 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
approximately 60 basis points.
Economic growth, which has lagged in the Northeast, began to show
signs of slowing during the six-month period ended March 31, 1995.
The Massachusetts economy, which has faired better than that of most
of its neighbors, is exhibiting evidence of this slowdown. Rising
interest rates have contributed to declining home sales. In
addition, there has been no appreciable job growth in the
Commonwealth since the summer of 1994. However, a bright spot for
the Commonwealth continues to be favorable help-wanted indexes as
well as positive tax revenues.
The re-election of Governor Weld in November should ensure a similar
political agenda over the next four years. Governor Weld began his
second term by proposing a conservative balanced budget for 1996 in
the amount of $16.7 billion, which is 2.6% higher than fiscal year
1995. This budget increases local aid to Massachusetts cities and
towns by $289 million, increases education spending by $228 million,
includes offsets to water and sewer rates of $10 million and
contains nine proposed tax cuts totaling $35 million. In addition,
Governor Weld plans to continue adding to the Commonwealth's "rainy
day" fund which is budgeted to end fiscal year 1996 at $420 million.
The Commonwealth, which generated a positive tax revenue stream to
finance daily operations, has refrained from borrowing in the short-
term municipal market. The Commonwealth has yet to utilize its line
of credit of $200 million in tax-exempt commercial paper. This
development has contributed to the Commonwealth's favorable review
by Moody's Investors Service, Inc., which raised the Commonwealth's
general obligation debt rating to A1 from A. However, concerns
regarding the financing of Boston's depressed central artery and new
third harbor tunnel have surfaced. This has left open a question of
how the Commonwealth will fund its portion of the billion dollar
price tag that the Federal government does not cover from the
projected $9.6 billion cost.
<PAGE>
An increase in local aid to the various cities and towns of
Massachusetts has allowed them to reduce their borrowing
approximately 13%, to a modest $462 million over the comparable
period last year. The majority of this issuance has been with one-
year maturities. Scarcity of Massachusetts issuance continues to
drive yields on AA-rated, one-year notes lower than comparable
general market short-term notes.
We maintained a predominately defensive strategy for CMA
Massachusetts Municipal Money Fund throughout the six-month period
ended March 31, 1995. We allowed the Fund's average life to decline
to the 30-day range from the 65-day range at the end of the
September period. We reduced the Fund's purchase of one-year
municipal notes while maintaining a high percentage of variable rate
demand notes as well as keeping tax-exempt commercial paper in the
30-day range. This was in response to the uncertainty over whether
the Federal Reserve Board was finished tightening monetary policy,
combined with a declining US dollar and the Mexican peso crisis, all
of which created an atmosphere where a more conservative approach
was warranted. We continue to closely monitor credit quality while
seeking to offer shareholders an attractive tax-exempt yield.
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 28, 1995
<PAGE>
Portfolio Abbreviations for CMA Massachusetts Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
S/F Single-Family
UPDATES Unit Priced Demand Adjustable
Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA MASSACHUSETTS 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>
Massachusetts-- Boston, Massachusetts, Water and Sewer Commission Revenue Bonds, VRDN,
100.6% Series A (a):
$ 700 3.75% due 11/01/2015 $ 700
5,500 3.85% due 11/01/2024 5,500
2,450 Chicopee, Massachusetts, BAN, 4% due 8/01/1995 2,451
2,000 Clipper Tax Exempt Trust, Massachusetts, VRDN, Class A, 4.17% due
10/17/2002 (a) 2,000
4,000 Fitchburg, Massachusetts, Industrial Development Financing Authority
Revenue Bonds (Netstal Machinery Project), VRDN, AMT, 4.45% due
12/23/2007 (a) 4,000
2,000 Framingham, Massachusetts, BAN, 4.08% due 8/30/1995 2,000
5,800 Massachusetts Bay Transportation Authority Revenue Bonds (General
Transportation System), 1984 Series A, 4.40% due 9/01/1995 5,800
2,000 Massachusetts State GO, Refunding, VRDN, Series A, 4.37% due
2/01/2006 (a) 2,000
1,500 Massachusetts State GO, UT, Series A, 5% due 6/15/1995 1,502
Massachusetts State Health and Educational Facilities Authority Revenue
Bonds, CP:
7,000 (Boston University Hospital), Series H, Subseries 2, 3.90% due 4/07/1995 7,000
5,000 (Fallon Health Care System), Series 1, 4.05% due 4/10/1995 5,000
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds, VRDN (a):
2,600 (Brigham and Woman's Hospital), Series A, 3.70% due 7/01/2017 2,600
700 (Capital Asset Program), Series A, 3.85% due 1/01/2001 700
1,300 (Capital Asset Program), Series B, 4.10% due 7/01/2005 1,300
3,200 (Capital Asset Program), Series C, 4.10% due 7/01/2005 3,200
2,000 (Capital Asset Program), Series E, 3.80% due 1/01/2035 2,000
<PAGE> 1,700 (Harvard University), Series I, 3.75% due 8/01/2017 1,700
5,000 (Massachusetts Institute of Technology), Series G, 3.75% due 7/01/2021 5,000
2,300 (Newbury College), Series A, 3.90% due 11/01/2018 2,300
2,000 (Wellesley College), Series B, 3.80% due 7/01/2022 2,000
6,000 (Williams College), Series E, 4% due 8/01/2014 6,000
5,200 Massachusetts State HFA, S/F Housing Revenue Bonds, AMT, Series 34,
3.85% due 6/01/1995 5,200
2,500 Massachusetts State Industrial Finance Agency, Cultural, Health and
Educational Revenue Bonds (Berkshire Project), VRDN, 4.10% due
9/01/2020 (a) 2,500
</TABLE>
<TABLE>
CMA MASSACHUSETTS 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>
Massachusetts $ 7,500 Massachusetts State Industrial Finance Agency, Health Care Facility
(concluded) Revenue Bonds (Beverly Enterprises, Inc.), VRDN, 4.20% due 4/01/2009 (a) $ 7,500
1,860 Massachusetts State Industrial Finance Agency, Industrial Revenue
Refunding Bonds (Easy Day Project), VRDN, Series A, 4.10% due 7/01/2006 (a) 1,860
4,000 Massachusetts State Industrial Finance Agency, PCR (Holyoke Water &
Power Company Project), VRDN, AMT, 4.25% due 12/01/2020 (a) 4,000
Massachusetts State Industrial Finance Agency, PCR, Refunding
(New England Power Company Project), CP:
4,300 4.15% due 4/07/1995 4,300
3,000 4.25% due 5/12/1995 3,000
6,700 Massachusetts State Industrial Finance Agency, Resource Recovery Revenue
Bonds (Ogden Haverhill), VRDN, AMT, Series B, 3.90% due 12/01/2011 (a) 6,700
Massachusetts State Industrial Finance Agency Revenue Bonds, VRDN (a):
800 (Hockomock YMCA), Series A, 3.95% due 6/01/2011 800
2,000 (New England Deaconess Project), Series B, 3.90% due 4/01/2023 2,000
4,500 (Williston-Northampton School Project), Series B, 4.15% due 4/01/2024 4,500
17,000 Massachusetts State Municipal Wholesale Electric Company, Power
Supply System, Revenue Bonds, VRDN, Series C, 4% due 7/01/2019 (a) 17,000
Massachusetts State, UPDATES, VRDN (a):
5,600 Series B, 4.35% due 12/01/1997 5,600
2,200 Series D, 4.35% due 6/01/1995 2,200
3,000 Series E, 4.35% due 12/01/1997 3,000
1,500 Montachusett, Massachusetts, Regional Transit Authority, RAN, 4.25% due
6/30/1995 1,502
2,440 Natick, Massachusetts, BAN, UT, 4.50% due 9/01/1995 2,445
New Bedford, Massachusetts:
2,600 BAN, UT, 4.75% due 8/11/1995 2,605
1,400 RAN, GO, 4.90% due 6/30/1995 1,403
1,000 North Adams, Massachusetts, BAN, UT, 4.25% due 6/30/1995 1,001
2,000 Peabody, Massachusetts, BAN, GO, 4.50% due 7/28/1995 2,003
<PAGE> 4,500 Pioneer Valley Transit Authority, Massachusetts, RAN, 4.25% due
8/11/1995 4,506
1,500 Reading, Massachusetts, BAN, GO, 4.25% due 7/14/1995 1,501
3,500 Springfield, Massachusetts, RAN, GO, 5.10% due 6/30/1995 3,506
Worcester, Massachusetts, Regional Transit Authority, RAN:
4,000 4% due 6/23/1995 4,001
2,575 4.10% due 6/23/1995 2,577
Total Investments (Cost--$161,963*)--100.6% 161,963
Liabilities in Excess of Other Assets--(0.6%) (887)
-----------
Net Assets--100.0% $ 161,076
===========
<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.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
STATEMENTS OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$161,963,008) (Note 1a) $ 161,963,008
Cash 170,688
Interest receivable 1,109,087
Deferred organization expenses (Note 1d) 3,282
Prepaid registration fees and other assets (Note 1d) 2,920
--------------
Total assets 163,248,985
--------------
Liabilities:
Payables:
Securities purchased $ 2,001,753
Investment adviser (Note 2) 67,725
Distributor (Note 2) 49,326 2,118,804
--------------
Accrued expenses and other liabilities 54,339
--------------
Total liabilities 2,173,143
--------------
Net Assets $ 161,075,842
==============
<PAGE>
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 16,108,754
Paid-in capital in excess of par 144,978,788
Accumulated realized capital losses--net (Note 4) (11,700)
--------------
Net Assets--Equivalent to $1.00 per share based on 161,087,542 shares of
beneficial interest outstanding $ 161,075,842
==============
</TABLE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1995
<CAPTION>
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 4,833,524
Expenses:
Investment advisory fees (Note 2) $ 756,123
Distribution fees (Note 2) 187,724
Professional fees 51,526
Transfer agent fees (Note 2) 44,690
Registration fees (Note 1d) 29,405
Accounting services (Note 2) 23,525
Printing and shareholder reports 21,681
Custodian fees 15,762
Amortization of organization expenses (Note 1d) 9,982
Pricing fees 6,325
Trustees' fees and expenses 2,004
Other 3,920
--------------
Total expenses 1,152,667
--------------
Investment income--net 3,680,857
Realized Loss on Investments--Net (Note 1c) (622)
--------------
Net Increase in Net Assets Resulting from Operations $ 3,680,235
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <C> <C>
Operations:
Investment income--net $ 3,680,857 $ 2,487,097
Realized loss on investments--net (622) (7,077)
-------------- --------------
Net increase in net assets resulting from operations 3,680,235 2,480,020
-------------- --------------
Dividends to Shareholders (Note 1e):
Investment income-- net (3,680,587) (2,487,097)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (3,680,587) (2,487,097)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 566,759,318 770,729,466
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 3,680,721 2,487,010
-------------- --------------
570,440,039 773,216,476
Cost of shares redeemed (560,168,139) (754,707,003)
-------------- --------------
Net increase in net assets derived from beneficial interest
transactions 10,271,900 18,509,473
-------------- --------------
Net Assets:
Total increase in net assets 10,271,548 18,502,396
Beginning of year 150,804,294 132,301,898
-------------- --------------
End of year* $ 161,075,842 $ 150,804,294
============== ==============
<FN>
*Undistributed investment income--net (Note 1f) $ -- $ 7,020
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived For the Period
from information provided in the financial statements. July 30, 1990++
For the Year Ended March 31, to 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 period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Investment income--net .02 .02 .02 .04 .03
--------- --------- --------- --------- ---------
Total from investment operations .02 .02 .02 .04 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.02) (.02) (.02) (.04) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.46% 1.74% 2.20% 3.66% 5.04%*
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .64% .66% .66% .73% .60%*
========= ========= ========= ========= =========
Expenses, net of reimbursement .76% .78% .78% .85% .72%*
========= ========= ========= ========= =========
Expenses .76% .78% .78% .87% .97%*
========= ========= ========= ========= =========
Investment income--net 2.43% 1.72% 2.15% 3.56% 4.92%*
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 161,076 $ 150,804 $ 132,302 $ 116,340 $ 84,613
========= ========= ========= ========= =========
<FN>
*Annualized.
++Commencement of Operations.
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 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) 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>
(f) Reclassifications--Generally accepted accounting principles
require that certain differences between undistributed net
investment income for financial reporting and tax purposes, if
permanent, be reclassified to accumulated net realized capital
losses. Accordingly, current year's permanent book/tax differences
of $7,290 have been reclassified from undistributed net investment
income to accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset value
per share.
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.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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.
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.
<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, 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.
4. Capital Loss Carryforward:
At March 31, 1995, the Fund had a net capital loss carryforward of
approximately $12,000, of which $4,000 expires in 2001, and $8,000
expires in 2002. This amount will be available to offset like
amounts of any future taxable gains.
<AUDIT-REPORT>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
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, 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 four-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.
<PAGE>
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 Massachusetts 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>
IMPORTANT TAX INFORMATION (UNAUDITED)
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, 1995 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, 1995.
Please retain this information for your records.
<PAGE>
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].
