CMA
CMA MASSACHUSETTS
MUNICIPAL MONEY FUND
Annual Report
March 31, 1997
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
Printed on post-consumer recycled paper
To Our Shareholders:
For the year ended March 31, 1997, CMA Massachusetts Municipal Money
Fund paid shareholders a net annualized yield of 2.81%*. As of March
31, 1997, the Fund's 7-day yield was 2.80%.
The Environment
Stock and bond market turbulence increased during the six-month
period ended March 31, 1997. Mounting evidence of stronger-than-
expected economic growth suggested to investors that the Federal
Reserve Board would make a preemptive strike to contain inflationary
pressures. These concerns were heightened by statements made by
Federal Reserve Board Chairman Alan Greenspan, and culminated in an
announced increase in the Federal Funds rate of 0.25% to 5.5% on
March 25. As investors became concerned that this might prove to be
only the first in a series of monetary policy tightening moves,
interest rates rose and stock and bond prices declined. Following
the central bank's action, investor sentiment fluctuated from
negative to more positive, depending upon whether the latest
economic data releases were perceived to suggest an overheating or
moderating trend. It appears that clear-cut signs of continued low
inflation and moderate economic growth, as well as no further
indications of monetary policy tightening, are needed before
stability returns to the financial markets.
<PAGE>
[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
Overall, the Commonwealth of Massachusetts performed well, as
economic activity remained positive throughout the six-month period
ended March 31, 1997. By diversifying its economic base from
manufacturing, Massachusetts developed other sectors. These sectors
include high technology, retail, tourism, healthcare and banking
industries, which together have offset declines in any one
particular area. In addition, high personal income levels and high
consumer confidence levels combined with relatively low mortgage
rates, and allowed the housing sector to remain on a positive growth
trend during the period. Also, favorable economic conditions
translated into seasonally adjusted unemployment levels below the
national average as Massachusetts registered a rate of 3.7% compared
to the national average of 5.3% in February.
A strong economic environment allowed the commonwealth to continue
reporting better-than-expected revenue collections. For the nine
months ended March 31, 1997, the commonwealth's total revenue
collections were $9.04 billion or 7.4% above the comparable period
last year. These positive revenue streams allowed Governor Weld to
initiate programs which reduce various tax burdens on Massachusetts
residents as well as increase the fiscal year 1997 revenue estimates
by $180 million. The commonwealth used its strong cash flow position
to avoid additional borrowing monies in the short-term municipal
market to finance daily operations. The positive fiscal results also
allow the commonwealth to continue assisting the various
Massachusetts municipalities, resulting in low borrowing levels in
the amount of $663 million for the six-month period ended March 31,
1997.
As discussed in our last report to shareholders, CMA Massachusetts
Municipal Money Fund began the six-month period ended March 31, 1997
employing an aggressive approach to the market with an average
portfolio maturity in the 75-day range. As fears of an imminent
interest rate increase by the Federal Reserve Board subsided and
investors began anticipating an economic slowdown, the Treasury bill
market and short-term municipal note market rallied approximately 25
basis points--50 basis points (0.25%--0.50%). The Fund benefited as
other investors began increasing their average portfolio maturities
utilizing lower-yielding municipal notes. As yields continued to
decline, the Fund began employing a more neutral approach to the
market allowing the average portfolio maturity to decline to the 55-
day range entering December 1996. This strategy allowed us to pursue
variable rate demand notes (VRDNs) and take advantage of the year-
end increase in VRDN rates without having to pursue overpriced short-
term municipal notes in Massachusetts.
<PAGE>
In late December 1996, we generally would have extended the Fund's
average life by reducing the VRDN exposure as seasonal supply
imbalances in the first quarter would cause yields on VRDNs to
remain low. However, as low employment statistics, high wages
statistics, high consumer confidence, high personal income and an
improving housing market continued to mount, the notion that the
Federal Reserve Board might begin to pursue a tightening policy
began to influence our portfolio strategy. We began employing a more
defensive approach to the market, allowing the average portfolio
maturity to decline to the 35-day--40-day range. We utilized
primarily VRDNs to meet new subscriptions into the Fund and
continued to avoid aggressively priced longer-dated Massachusetts
municipal notes. This strategy benefited the Fund because the
anticipated supply imbalances were not as pronounced as in previous
years, allowing VRDN yields to remain at attractive levels.
On March 25, 1997, because of concerns with a growing economy and a
tight labor market, the Federal Reserve Board made a preemptive move
against inflation by raising the Federal Funds rate by 25 basis
points to 5.50%. This increase in interest rates, which many believe
is the first in a series of interest rate hikes, has already forced
yields on Treasury bills and municipal notes higher by 25 basis
points--50 basis points.
The Fund performed well during the year as we took advantage of
periods of weakness in yields created by market uncertainties, and
extended the average portfolio maturity and locked in attractive
yields when the market reversed itself. At the same time, we avoided
being too aggressive in the Fund's purchases of Massachusetts
municipal notes, allowing the average life to decline and
positioning the Fund well for the upcoming months.
Looking ahead, we anticipate that we will continue to pursue a
defensive strategy for the Fund. This strategy is warranted as we
prepare for a period of technical weakness in the short-term
municipal market created by tax-related redemptions. In addition, we
will continue to monitor economic data that may influence how far
the Federal Reserve Board may go in raising interest rates and its
affect on the short-term municipal note market. We will look for
opportunities to continue to diversify the Fund and replace maturing
municipal notes as the market adjusts to higher yield levels.
However, because of the strong economic performance of the
commonwealth, we continue to expect a reduced amount of short-term
notes issuance. We will also closely monitor credit quality while
seeking an attractive tax-exempt yield for shareholders.
In Conclusion
We thank you for your support of CMA Massachusetts Municipal Money
Fund, and we look forward to serving your investment needs in the
months and years ahead.
<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 28, 1997
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
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
SAAN Student Aid Anticipation Notes
UPDATES Unit Priced Demand Adjustable Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Massachusetts-- $ 4,500 Barnstable, Massachusetts, BAN, UT, 3.60% due 6/18/1997 $ 4,501
99.3% 2,950 Boston, Massachusetts, IDR (Boston Seafood Distribution Center Inc. Project),
VRDN, AMT, 3.20% due 1/01/2022 (a) 2,950
2,800 Boston, Massachusetts, Industrial Development Financing Authority, Industrial
Revenue Bonds (Acme Bookbinding Co., Inc.), VRDN, AMT, 3.40% due
9/01/2006 (a) 2,800
5,000 Boston, Massachusetts, Water and Sewer Commission Revenue Bonds, VRDN,
Series SG-75, 3.50% due 11/01/2019 (a)(b) 5,000
4,000 Chatham, Massachusetts, BAN, 3.85% due 7/02/1997 4,003
2,000 Clipper Tax-Exempt Trust 1994-2, VRDN, Class A, 3.15% due 10/17/2002 (a) 2,000
Eagle Tax-Exempt Trust, Custodial Receipts, VRDN (a):
1,900 3.49% due 2/01/2006 1,900
9,200 3.49% due 2/01/2011 9,200
Fitchburg, Massachusetts:
600 BAN, 3.85% due 6/06/1997 600
3,800 RAN, 4.50% due 6/30/1997 3,804
1,086 SAAN, 4.10% due 6/06/1997 1,087
1,025 Greater Attleboro--Taunton Regional Transportation Authority, Massachusetts,
RAN, 4.50% due 8/15/1997 1,027
Haverhill, Massachusetts, BAN:
3,285 4.11% due 4/25/1997 3,285
6,000 UT, 4.50% due 4/25/1997 6,002
3,245 Lynn, Massachusetts, Water and Sewer Commission, BAN, UT, Series A, 4.25%
due 10/08/1997 3,248
5,000 Malden, Massachusetts, BAN, 4% due 6/03/1997 5,002
5,000 Massachusetts State, GO, VRDN, Series SG-38, 3.50% due 8/01/2014 (a)(b) 5,000
3,000 Massachusetts State, HFA, Housing Revenue Bonds, Series 50, 3.70%
due 6/02/1997 3,000
3,900 Massachusetts State, HFA, M/F Housing Project, Refunding, VRDN, Series A, 3.30%
due 1/15/2010 (a)(c) 3,900
Massachusetts State Health and Educational Facilities Authority Revenue Bonds:
8,500 (Boston University), CP, Series H, 3.50% due 5/14/1997 8,500
2,000 (Endicott College), VRDN, Series A, 3.30% due 10/01/2011 (a) 2,000
1,300 Massachusetts State Industrial Finance Agency, Cultural, Health and Educational
Revenue Bonds (Berkshire Project), VRDN, 3.20% due 9/01/2020 (a) 1,300
5,500 Massachusetts State Industrial Finance Agency, Health Care Facility Revenue
Bonds (Beverly Enterprises, Inc.), VRDN, 3.75% due 4/01/2009 (a) 5,500
</TABLE>
<PAGE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1997 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Massachusetts Massachusetts State Industrial Finance Agency, Industrial Revenue Bonds,
(concluded) VRDN (a):
$ 3,570 (AFC Cable Systems Inc.), AMT, 3.40% due 7/01/2016 $ 3,570
2,000 (BBB Esq. LLC), AMT, Series B, 3.95% due 12/01/2016 2,000
4,100 (Foilmark Manufacturing), AMT, Series A, 3.40% due 6/01/2010 4,100
4,200 (Gem Group Inc.), AMT, 3.40% due 7/01/2016 4,200
2,500 (KMS Companies), AMT, 3.40% due 5/01/2016 2,500
1,000 (Mercer Paper Tube Corp.), AMT, 3.75% due 11/01/2011 1,000
1,100 (Nutramax Products Inc. Project), AMT, Series A, 3.40% due 5/01/2016 1,100
1,000 (Nutramax Products Inc. Project), AMT, Series B, 3.40% due 5/01/2016 1,000
7,500 (Performance Corrugated Inc. Project), AMT, 3.70% due 3/01/2009 7,500
1,535 Refunding (Easy Day Realty Trust Project), Series A, 3.35% due 7/01/2006 1,535
3,350 (Telcom USA Inc.), AMT, 3.40% due 8/01/2016 3,350
3,155 (William F. Rogers), AMT, 3.40% due 11/01/2006 3,155
5,205 (ZBR Limited Partnership), AMT, Series A, 3.40% due 4/15/2015 5,205
1,500 (ZBR Limited Partnership), AMT, Series B, 3.35% due 4/15/2017 1,500
Massachusetts State Industrial Finance Agency, PCR:
4,000 (Holyoke Water & Power Company Project), VRDN, AMT, 3.25% due
12/01/2020 (a) 4,000
4,800 Refunding (New England Power Company Project), CP, 3.60% due 4/10/1997 4,800
Massachusetts State Industrial Finance Agency Revenue Bonds, VRDN (a):
5,000 (Edgewood Retirement Community Project), Series C, 3.45% due 11/15/2025 5,000
3,000 (Governor Dummer Academy), 3.25% due 7/01/2026 3,000
1,825 (Heritage at Dartmouth), AMT, 3.45% due 12/01/2028 1,825
1,000 (Newbury College Issue), 3.30% due 6/01/2021 1,000
4,500 (Williston Northampton Project), Series B, 3.30% due 4/01/2024 4,500
2,940 Massachusetts State Industrial Finance Agency, Solid Waste Disposal Revenue
Bonds (E.L. Harvey and Sons), VRDN, AMT, 3.40% due 1/01/2011 (a) 2,940
16,255 Massachusetts State Port Authority, Revenue Refunding Bonds, VRDN,
AMT, Series B, 3.65% due 7/01/2018 (a) 16,255
2,000 Massachusetts State, UPDATES, Series B, 3.60% due 12/01/1997 (a) 2,000
2,555 Massachusetts State Water Resources Authority, Municipal Trust, VRDN,
Series SG-63, 3.50% due 8/01/2024 (a)(b) 2,555
5,000 Mendon Upton, Massachusetts, Regional School District, BAN, UT, 3.90% due
7/10/1997 5,005
5,600 New Bedford, Massachusetts, RAN, 4.50% due 6/30/1997 5,607
1,775 Northampton, Massachusetts, BAN, 4% due 5/30/1997 1,776
1,550 Southbridge, Massachusetts, BAN, 3.85% due 5/15/1997 1,550
4,000 Southeastern Regional Transportation Authority, Massachusetts, RAN, 4.50%
due 9/19/1997 4,008
5,950 Springfield, Massachusetts, BAN, 4.10% due 6/27/1997 5,958
<PAGE>
Total Investments (Cost--$199,103*)--99.3% 199,103
Other Assets Less Liabilities--0.7% 1,495
--------
Net Assets--100.0% $200,598
========
<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, 1997.
(b)MBIA Insured.
(c)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, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost--$199,102,934) (Note 1a) $ 199,102,934
Cash 47,873
Interest receivable 1,659,010
Prepaid registration fees and other assets (Note 1d) 8,558
-------------
Total assets 200,818,375
-------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 84,778
Distributor (Note 2) 59,257
Beneficial interest redeemed 34 144,069
-------------
Accrued expenses and other liabilities 75,908
-------------
Total liabilities 219,977
-------------
Net Assets $ 200,598,398
=============
<PAGE>
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 20,061,387
Paid-in capital in excess of par 180,552,389
Accumulated realized capital losses--net (Note 4) (15,378)
-------------
Net Assets--Equivalent to $1.00 per share based on 200,613,875 shares of beneficial
interest outstanding $ 200,598,398
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned $ 6,654,385
Expenses:
Investment advisory fees (Note 2) $ 938,904
Distribution fees (Note 2) 228,987
Accounting services (Note 2) 56,006
Professional fees 49,700
Transfer agent fees (Note 2) 48,924
Registration fees (Note 1d) 45,653
Printing and shareholder reports 26,005
Custodian fees 18,415
Pricing fees 3,475
Trustees' fees and expenses 1,774
Other 3,157
-------------
Total expenses 1,421,000
-------------
Investment income--net 5,233,385
Realized Gain on Investments--Net (Note 1c) 2,973
-------------
Net Increase in Net Assets Resulting from Operations $ 5,236,358
=============
See Notes to Financial Statements.
</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: 1997 1996
<S> <C> <C>
Operations:
Investment income--net $ 5,233,385 $ 5,180,721
Realized gain (loss) on investments--net 2,973 (6,750)
------------- -------------
Net increase in net assets resulting from operations 5,236,358 5,173,971
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (5,233,385) (5,180,721)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (5,233,385) (5,180,721)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 725,445,153 659,752,882
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 5,233,764 5,180,565
------------- -------------
730,678,917 664,933,447
Cost of shares redeemed (719,565,744) (636,520,287)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 11,113,173 28,413,160
------------- -------------
Net Assets:
Total increase in net assets 11,116,146 28,406,410
Beginning of year 189,482,252 161,075,842
------------- -------------
End of year $ 200,598,398 $ 189,482,252
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<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: 1997 1996 1995 1994 1993
<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 .02
-------- -------- -------- -------- --------
Total from investment operations .03 .03 .02 .02 .02
-------- -------- -------- -------- --------
Less dividends from investment income--net (.03) (.03) (.02) (.02) (.02)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 2.81% 3.05% 2.46% 1.74% 2.20%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses .76% .76% .76% .78% .78%
======== ======== ======== ======== ========
Investment income--net 2.78% 3.00% 2.43% 1.72% 2.15%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) $200,598 $189,482 $161,076 $150,804 $132,302
======== ======== ======== ======== ========
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.
<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 and back-up withholding 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.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets, at the following annual rates: 0.50%
of the first $500 million of average daily net assets; 0.425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1
billion.
<PAGE>
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, 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, 1997, the Fund had a net capital loss carryforward of
approximately $15,000, of which $1,000 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.
<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 Mass-
achusetts Municipal Money Fund of CMA Multi-State Municipal Series
Trust as of March 31, 1997, 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.
<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 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, 1997 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, 1997, 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
May 2, 1997
</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 its taxable year ended March 31, 1997 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, 1997.
Please retain this information for your records.
CMA MASSACHUSETTS MUNICIPAL MONEY FUND
<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
Steven T. Lewis--Vice President
Darrin J. SanFillippo--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 351
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
