CMA
CMA MASSACHUSETTS
MUNICIPAL MONEY FUND
Annual Report
March 31, 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 Massachusetts
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1996, CMA Massachusetts Municipal Money
Fund paid shareholders a net annualized yield of 3.05%*. As of March
31, 1996, the Fund's 7-day yield was 2.66%.
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.
<PAGE>
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.
Investment Outlook and Strategy
During the six-month period ended March 31, 1996, the Commonwealth
of Massachusetts experienced erratic economic growth. Just as
economic data suggested that the Commonwealth was beginning to
improve at the beginning of the March period, slow retail sales
during the holiday season and the harsh winter weather tempered this
positive growth pattern. However, pent-up retail demand emerged
toward the end of the six-month period ended March 31, 1996 as the
weather began to improve, providing the potential for steadier
future economic growth. The Commonwealth's employment picture
continues to hinder any enthusiasm by consumers, as corporate
restructurings by major employers and bank mergers, such as Bank of
Boston Corp. and BayBank Corp., continue to heighten job
uncertainty. Despite these layoffs, Massachusetts' seasonally
adjusted unemployment rate continued to mirror the national level.
During the six-month period ended March 31, 1996, Governor Weld
proposed a $16.7 billion spending plan for the fiscal year 1997
budget. The proposal included a reorganization plan for government
that would reduce the number of cabinet secretaries, as well as
eliminate 74 operating agencies and about 100 boards and
commissions, thus providing approximately $600 million in savings
over two years. Savings generated by the streamlining proposals
will allow Governor Weld to lower the personal income tax rate from
5.95% to 5.45% over the two-year period. In addition, the savings
will add $243 million to local aid for education; provide money for
the criminal justice system and local aid to help keep property
taxes down; and fund day care for low-income families trying to work
themselves off the welfare rolls.
<PAGE>
The $16.7 billion spending plan assumes the Federal government will
approve a variety of new block grants resulting in approximately a
$500 million reduction in spending. Without such grants, spending
would be $17.4 billion for fiscal year 1997, a $425 million, or
2.5%, increase over anticipated current spending. The budget also
assumes projected increases in tax revenues of 2.8% or about $328
million. Revenue collections in the Commonwealth for the first nine
months of fiscal year 1996 were on target with the 1996 budget
estimates and 6% above the comparable period for fiscal year 1995.
Because of the timing related to collections and the delinquent
funding received by the Federal Government as a result of the
budgetary impasse, the Commonwealth used its line of credit with the
tax-exempt commercial paper program to finance daily operations.
Currently, Massachusetts has $135 million outstanding in this
program. Low borrowing levels by various Massachusetts'
municipalities kept short-term municipal issuance for the six-month
period ended March 31, 1996 moderate at $475 million or 3% above the
comparable period last year.
The Fund began the six-month period ended March 31, 1996 with a
defensive approach to the market and an average portfolio maturity
in the 40-day range. However, a combination of weaker-than-expected
economic statistics, low inflation, dwindling availability of
municipal supply, and the January surge in seasonal money inflows
prompted a more aggressive approach to the market. We extended the
Fund's average portfolio maturity to the 75-day range and maintained
it throughout January, then spent the latter months of the March
period gradually shortening the Fund's average portfolio maturity.
This strategy benefited the Fund by allowing it to take advantage of
the flat yield curve scenario which persisted for most of 1995,
while limiting the effect on the Fund of the rising interest rates
experienced thus far in 1996.
In addition, recent economic data showed signs of strength in the
economy. This trend, combined with the Federal Reserve Board's
reluctance to lower interest rates further at the March Federal Open
Market Committee meeting, caused us to pursue a neutral stance to
the market. In the upcoming months, we anticipate maintaining an
average portfolio maturity in the 50-day range, while preparing to
meet expected tax-related redemptions in April. During this period
of technical weakness, we will look to take advantage of yield
opportunities to extend the Fund's average portfolio maturity prior
to June and July, when technical factors typically cause demand for
tax-exempt paper to be strong. This will be accomplished while
monitoring economic activity and the Federal Reserve Board's stance
on monetary policy, and adjusting the Fund's strategy accordingly.
We continue to look for opportunities to diversify and closely
monitor credit quality, while seeking to offer an attractive tax-
exempt yield for shareholders.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Kevin A. Schiatta)
Kevin A. Schiatta
Vice President and Portfolio Manager
April 30, 1996
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
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
SAAN Student Aid Anticipation Notes
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA MASSACHUSETTS 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>
Massachusetts-- $ 400 Agawam, Massachusetts, BAN, 4% due 7/03/1996 (d) $ 401
97.2% 3,046 Bellingham, Massachusetts, BAN, 4% due 12/17/1996 (d) 3,052
348 Billerica, Massachusetts, SAAN, 4% due 7/23/1996 (d) 349
600 Boston, Massachusetts, Water and Sewer Commission Revenue Bonds,
VRDN,Series A, 3.10% due 11/01/2015 (a) 600
4,300 Brockton, Massachusetts, RAN, 4.10% due 6/28/1996 4,308
2,000 Clipper Tax Exempt Trust 1994-2, Massachusetts, VRDN, Class A,
3.41% due 10/17/2002 (a) 2,000
Danvers, Massachusetts, BAN (d):
1,295 4% due 7/19/1996 1,296
500 3.98% due 8/23/1996 501
Dracut, Massachusetts:
1,000 BAN, 3.75% due 6/28/1996 1,000
2,700 RAN, 3.70% due 6/28/1996 2,702
6,000 East Bridgewater, Massachusetts, BAN, UT, 3.80% due 12/20/1996 6,004
4,000 Fitchburg, Massachusetts, Industrial Development Financing Authority
Revenue Bonds (Netstal Machinery Project), VRDN, AMT, 3.45% due
12/23/2007 (a) 4,000
2,886 Hopkinton, Massachusetts, BAN, 4% due 7/05/1996 (d) 2,888
6,750 Lynn, Massachusetts, Water and Sewer Commission, BAN, Series A, 4.50%
due 10/11/1996 6,761
Massachusetts State GO, VRDN (a):
9,700 3.47% due 2/01/2011 9,700
2,000 Refunding, Series A, 3.48% due 2/01/2006 (b) 2,000
Massachusetts State Health and Educational Facilities Authority
Revenue Bonds:
9,000 (Boston University), CP, Series H, 3.20% due 5/16/1996 9,000
700 (Capital Asset Program), VRDN, Series A, 3.05% due 1/01/2001 (a) 700
15,900 (Capital Asset Program), VRDN, Series D, 3.30% due 1/01/2035 (a)
(c) 15,900
3,680 (Newbury College), VRDN, Series A, 3.15% due 11/01/2018 (a) 3,680
5,900 (Williams College), VRDN, Issue E, 3% due 8/01/2014 (a) 5,900
7,500 Massachusetts State HFA, M/F Housing Project, Refunding, VRDN,
Series A, 3.20% due 1/15/2010 (a) (e) 7,500
8,000 Massachusetts State HFA, S/F Housing Revenue Bonds, AMT, Series 34,
4.15% due 6/01/1996 8,000
1,300 Massachusetts State Industrial Finance Agency, Cultural, Health and
Educational Revenue Bonds (Berkshire Project), VRDN, 3.15% due
9/01/2020 (a) 1,300
</TABLE>
<PAGE>
<TABLE>
CMA MASSACHUSETTS 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>
Massachusetts $ 3,500 Massachusetts State Industrial Finance Agency, Health Care Facility
(concluded) Revenue Bonds (Beverly Enterprises, Inc.), VRDN, 3.50% due
4/01/2009 (a) $ 3,500
Massachusetts State Industrial Finance Agency, Industrial Revenue
Bonds, VRDN (a):
4,400 (Foilmark Manufacturing), AMT, Series A, 3.20% due 6/01/2010 4,400
1,700 Refunding (Easy Day Reality Project), Series A, 3.10% due 7/01/1996 1,700
1,500 (ZBR Limited Partnership), AMT, 3.45% due 4/15/2015 1,500
4,000 Massachusetts State Industrial Finance Agency, PCR (Holyoke
Water & Power Company Project), VRDN, AMT, 3.45% due 12/01/2020 (a) 4,000
Massachusetts State Industrial Finance Agency, PCR, Refunding
(New England Power Company Project), CP:
3,000 3.15% due 4/08/1996 3,000
4,800 3.20% due 5/09/1996 4,800
Massachusetts State Industrial Finance Agency Revenue Bonds, VRDN (a):
5,000 (Edgewood Retirement Community Project), Series C, 3.40%
due 11/15/2025 5,000
700 (Hockomock YMCA), Series A, 3.20% due 6/01/2011 700
7,000 (Whitehead Institute), 3.45% due 7/01/2026 7,000
4,500 (Williston Northampton Project), Series B, 3.20% due 4/01/2024 4,500
1,500 Massachusetts State Industrial Finance Agency, Solid Waste Disposal
Revenue Bonds (E.L. Harvey and Sons), VRDN, AMT, 3.45% due
1/01/2011 (a) 1,500
Massachusetts State Port Authority, Revenue Refunding Bonds,
VRDN (a):
6,900 AMT, Series B, 3.35% due 7/01/2018 6,900
1,700 Series A, 3.25% due 7/01/2015 1,700
3,000 Massachusetts State Water Resources Authority, CP, 3.60% due
5/13/1996 3,000
New Bedford, Massachusetts:
3,400 BAN, 4.10% due 7/19/1996 3,407
1,600 RAN, 4% due 6/28/1996 1,602
North Andover, Massachusetts, BAN:
2,150 4.18% due 9/11/1996 2,152
4,900 UT, 4% due 1/10/1997 4,909
7,400 Springfield, Massachusetts, BAN, 3.75% due 7/12/1996 7,412
2,700 Stoughton, Massachusetts, BAN, 4.20% due 8/30/1996 (d) 2,703
2,824 Webster, Massachusetts, SAAN, 3.80% due 5/31/1996 (d) 2,825
6,500 Worcester, Massachusetts, BAN, Lot A, 4.20% due 8/29/1996 6,504
Total Investments (Cost--$184,256*)--97.2% 184,256
Other Assets Less Liabilities--2.8% 5,226
--------
Net Assets--100.0% $189,482
========
<PAGE>
<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, 1996.
(b)AMBAC Insured.
(c)MBIA Insured.
(d)Bank Qualified.
(e)FNMA Collateralized.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$184,256,028) (Note 1a) $ 184,256,028
Cash 112,108
Receivables:
Securities sold $ 4,000,000
Interest 1,276,054 5,276,054
-------------
Prepaid registration fees and other assets (Note 1d) 30,773
-------------
Total assets 189,674,963
-------------
Liabilities:
Payables:
Investment adviser (Note 2) 75,622
Distributor (Note 2) 58,270
Dividends to shareholders (Note 1e) 78 133,970
-------------
Accrued expenses and other liabilities 58,741
-------------
Total liabilities 192,711
-------------
Net Assets $ 189,482,252
=============
<PAGE>
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 18,950,070
Paid-in capital in excess of par 170,550,533
Accumulated realized capital losses--net (Note 4) (18,351)
-------------
Net Assets--Equivalent to $1.00 per share based on 189,500,702 shares of
beneficial interest outstanding $ 189,482,252
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MASSACHUSETTS 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 $ 6,492,108
Expenses:
Investment advisory fees (Note 2) $ 864,244
Distribution fees (Note 2) 215,451
Professional fees 55,989
Transfer agent fees (Note 2) 51,674
Accounting services (Note 2) 36,998
Registration fees (Note 1d) 32,900
Printing and shareholder reports 25,766
Custodian fees 14,624
Pricing fees 5,362
Amortization of organization expenses (Note 1d) 3,282
Trustees' fees and expenses 1,802
Other 3,295
-------------
Total expenses 1,311,387
-------------
Investment income--net 5,180,721
Realized Loss on Investments--Net (Note 1c) (6,750)
-------------
Net Increase in Net Assets Resulting from Operations $ 5,173,971
=============
</TABLE>
<PAGE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <C> <C>
Operations:
Investment income--net $ 5,180,721 $ 3,680,857
Realized loss on investments--net (6,750) (622)
------------- -------------
Net increase in net assets resulting from operations 5,173,971 3,680,235
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (5,180,721) (3,680,587)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (5,180,721) (3,680,587)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 659,752,882 566,759,318
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 5,180,565 3,680,721
------------- -------------
664,933,447 570,440,039
Cost of shares redeemed (636,520,287) (560,168,139)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 28,413,160 10,271,900
------------- -------------
Net Assets:
Total increase in net assets 28,406,410 10,271,548
Beginning of year 161,075,842 150,804,294
------------- -------------
End of year $ 189,482,252 $ 161,075,842
============= =============
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
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 .02 .02 .02 .04
-------- -------- -------- -------- --------
Total from investment operations .03 .02 .02 .02 .04
-------- -------- -------- -------- --------
Less dividends from investment income--net (.03) (.02) (.02) (.02) (.04)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 3.05% 2.46% 1.74% 2.20% 3.66%
======== ======== ======== ======== ========
<PAGE>
Ratios to Average Net Assets:
Expenses, net of reimbursement .76% .76% .78% .78% .85%
======== ======== ======== ======== ========
Expenses .76% .76% .78% .78% .87%
======== ======== ======== ======== ========
Investment income--net 3.00% 2.43% 1.72% 2.15% 3.56%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) $189,482 $161,076 $150,804 $132,302 $116,340
======== ======== ======== ======== ========
See Notes to Financial Statements.
</TABLE>
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.
<PAGE>
(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 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 $99 have been reclassified from paid-in capital in excess of par
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.
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
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.
<PAGE>
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 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.
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 $18,000, of which $4,000 expires in 2001, $7,000
expires in 2002, and $7,000 expires in 2004. This amount will be
available to offset like amounts of any future taxable gains.
<PAGE>
<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, 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 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 Massachusetts 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.
Deloitte & Touche LLP
Princeton, New Jersey
April 30, 1996
</AUDIT-REPORT>
<PAGE>
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 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 ended March 31, 1996.
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
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
<PAGE>
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
