CMA
CMA NEW JERSEY
MUNICIPAL MONEY FUND
Annual Report
March 31, 1994
Merrill Lynch
BULL LOGO
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].
<PAGE>
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 rep-
resentation of future performance, which will fluc-
tuate. 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 in-
sured nor guaranteed by the US Government.
CMA New Jersey
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1994, CMA New Jersey Municipal Money
Fund paid shareholders a net annualized yield of 1.82%*. As of
March 31, 1994, the Fund's 7-day yield was 1.67%.
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 tight-
ening should the rate of inflation accelerate, and bond prices de-
clined 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 re-
sult, 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.
<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.
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 accel-
erate to the point where significant Federal Reserve Board tight-
ening will be necessary to contain inflation.
Investment Outlook and Strategy
During the six-month period ended March 31, 1994, New Jersey tax-
exempt securities were in constant demand. This demand was exacer-
bated by the relatively low issuance that has characterized the
New Jersey market for the entire year. On December 1, 1993, we
were given a temporary respite from the limited availability of
New Jersey tax-exempt securities when the State entered the market
with its annual note issuance and sold $1.3 billion in Tax and
Revenue Anticipation Notes (TRANs). These notes received the high-
est ratings, MIG1 and SP1+, from Moody's Investors Service, Inc.
and Standard & Poor's Corp., respectively, and funded the budget
passed in June of 1993. These TRANs met with strong investor in-
terest and were originally reoffered to yield 2.15%, which repre-
sented less than 65% of the yield of a taxable alternative invest-
ment. Strong demand for these TRANs throughout the period can be
attributed to the tax-exempt money funds whose assets increased
approximately $16.0 billion from $100.7 billion on October 1,
1993 to $116.2 billion at the close of the period. This issuance
brought the total New Jersey issuance for all of 1993 to $1.8
billion, a decrease from last year's issuance of $3.4 billion.
In the first quarter of 1994, issuance totaled $132.7 million.
In January, newly elected Governor Whitman announced her intention
to reduce personal income taxes by 5% retroactive to January 1, 1994.
In addition, she announced the formation of an Economic Master Plan
Commission whose purpose will be to look for new ways to stimulate
the State's economy and replace revenues lost from the proposed re-
duction in taxes. Whitman also called for a further reduction in
taxes beginning in 1995. In March, Whitman released the State of
New Jersey's fiscal 1995 budget which totaled $15.8 billion. In her
budget, Whitman addressed the redistribution of aid to schools from
wealthy to poorer districts, the potential privatization of state-
run day-care centers, and reduced aid to public television. Whitman
also proposed that the sale of two of the State's four marinas and
the incorporation of a surplus in the public employee pension and
health programs could replace the revenues lost by tax cuts.
<PAGE>
During the March period, net assets of CMA New Jersey Municipal
Money Fund increased by approximately 15% and on March 31, 1994
stood at $441.8 million. Because of a steep yield curve, an en-
vironment in which one garners increased yield from buying longer-
term instruments, we maintained an aggressive average portfolio
maturity for most of the period. However, in late January we re-
duced our average portfolio maturity to the 60-day range as the
Federal Reserve Board gave increasingly strong indications that
a tightening of monetary policy was imminent. In the upcoming
period, we anticipate that the tax-exempt money market fund in-
dustry will experience traditional "tax-related" redemptions in
April and also that states and municipalities will begin to fund
their borrowing needs in June. Accordingly, we plan to maintain
a relatively short average portfolio maturity until more infor-
mation regarding this issuance becomes available.
We thank you for your continued support of CMA New Jersey Muni-
cipal 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 26, 1994
IMPORTANT TAX INFORMATION
All of the net investment income distributions paid daily by CMA
New Jersey Municipal Money Fund of CMA Multi-State Municipal
Series Trust during its taxable year ended March 31, 1994 qualify
as tax-exempt interest dividends for Federal income tax purposes.
Additionally, the Fund distributed short-term capital gains of
$0.000056 per share to shareholders of record on December 31,
1993. There were no long-term capital gains distributed during
the Fund's taxable year ended March 31, 1994.
Please retain this information for your records.
<PAGE>
Portfolio Abbreviations for CMA New Jersey Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
DDN Daily Demand Notes
EDA Economic Development Authority
GO General Obligation Bonds
PCR Pollution Control Revenue Bonds
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
CMA NEW JERSEY 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>
New Jersey-- $ 10,900 Atlantic County, New Jersey, Improvement Authority Revenue Bonds (Pooled
84.8% Government Loan Program), VRDN, 2.20% due 7/01/2026 (a) $ 10,900
6,000 Bergen County, New Jersey, BAN, 2.82% due 6/28/1994 6,000
10,750 Cape May County, New Jersey, Municipal Utilities Authority, Solid Waste
Resource Recovery Revenue Bonds (Daneco Project), AMT, 2.80% due 11/30/1994 10,750
11,950 Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan), VRDN, 2.20% due 7/01/2026 (a) 11,950
Floating Rate Trust Certificate, New Jersey:
20,500 Series 1993 A, VRDN, 2.65% due 2/16/1999 (a) 20,500
13,260 Series 1994 D, 2.65% due 5/23/1994 13,260
9,000 Galloway Township, New Jersey, BAN, 3.25% due 7/15/1994 9,012
8,000 Hudson County, New Jersey, BAN, 3.26% due 10/12/1994 8,011
9,410 Hudson County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
2.50% due 7/15/2026 (a) 9,410
12,300 Jersey City, New Jersey, BAN, 3.25% due 9/30/1994 12,306
4,000 Marlboro Township, New Jersey, BAN, 2.65% due 4/15/1994 4,000
5,500 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
2.20% due 11/01/1998 (a) 5,500
24,700 Monmouth County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), VRDN, 2.20% due 8/01/2016 (a) 24,700
3,985 Monmouth County, New Jersey, Revenue Refunding Bonds, Series B, 4.75%
due 7/01/1994 4,006
11,500 New Jersey Building Authority, State Building Revenue Bonds, VRDN,
2.90% due 6/01/1994 (a) 11,500
New Jersey EDA, Dock Facilities Revenue Refunding Bonds
(Bayonne/IMTT Project), VRDN (a):
4,200 Series A, 2.90% due 12/01/2027 4,200
<PAGE> 1,600 Series 1993 B, 2.85% due 12/01/2027 1,600
New Jersey EDA, Economic Development Revenue Bonds (a):
400 (Dow Chemical), DDN, 2.60% due 5/01/2001 400
1,500 Refunding (Church & Dwight), VRDN, 2.25% due 12/01/2008 1,500
New Jersey EDA, Economic Development Revenue Bonds, VRDN (a):
9,725 (Benedictine Abbey of Newark), 2.20% due 12/01/2019 9,725
1,900 (Branch/Jersey Avenue Project), 2.05% due 5/01/2011 1,900
7,800 (Center for Aging, Applewood Estates Project), 2.30% due 12/01/2019 7,800
5,000 (Epitaxx, Inc. Project), AMT, 2.45% due 8/01/2016 5,000
1,250 (Holt Hauling & Warehouse I ), AMT, 2.625% due 11/01/2023 1,250
1,900 (Office Courthouse Association Project), AMT, 2.30% due 4/01/2011 1,900
</TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Industrial and Economic Development Revenue Bonds (a):
(concluded) $ 2,900 (Burmah Castrol Inc.), VRDN, 2.05% due 8/01/2005 $ 2,900
2,675 (East Meadow Corp.), VRDN, Series A, 2.30% due 12/01/2006 2,675
4,770 (East Meadow Corp.), VRDN, Series B, 2.30% due 12/01/2006 4,770
1,400 (Elizabeth Realty Urban Renewal Associates), VRDN, AMT, 3.20% due
6/01/2000 1,400
3,200 (Marriott Corp. Project), VRDN, 2.35% due 10/01/2014 3,200
4,100 (Seton Company Project), VRDN, 2.05% due 9/01/2005 4,100
4,000 (Toys 'R' Us, Inc. Project), DDN, 3.05% due 4/01/2019 4,000
New Jersey EDA, PCR (a):
7,450 (Merck & Co. Project), VRDN, Series A, 2.45% due 10/01/2004 7,450
5,700 Refunding (Exxon Project), DDN, 2.60% due 4/01/2022 5,700
New Jersey EDA Revenue Bonds (Chambers Cogeneration Project), CP, AMT:
4,500 2.50% due 4/22/1994 4,500
8,000 2.55% due 4/26/1994 8,000
6,800 New Jersey EDA Revenue Bonds (Hoffman-La Roche Inc. Project), AMT, DDN,
2.90% due 11/01/2011 (a) 6,800
3,000 New Jersey EDA, Revenue Refunding Bonds (400 International Drive Partners),
DDN, 3.25% due 9/01/2005 (a) 3,000
3,150 New Jersey Educational Facilities Finance Authority Revenue Bonds
(College and University Equipment), VRDN, Series A, 2% due 12/01/1995 (a) 3,150
New Jersey Health Care Facilities Finance Authority Revenue Bonds
(Hospital Capital Asset Program), VRDN (a):
2,200 Series A, 2.20% due 7/01/2035 2,200
3,000 Series B, 2.20% due 7/01/2035 3,000
5,000 Series C, 2.20% due 7/01/2035 5,000
3,800 Series D, 2.20% due 7/01/2035 3,800
<PAGE> 7,640 New Jersey Sports and Exposition Authority, VRDN, Series C,
2.20% due 9/01/2024 (a) 7,640
1,580 New Jersey State Educational Facilities Authority Revenue Bonds (Princeton
University), Series B, 3% due 7/01/1994 1,580
10,000 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds, 2.90%
due 9/29/1994 10,000
13,300 New Jersey State, TRAN, Series A, 3% due 6/15/1994 13,316
25,000 New Jersey State Turnpike Authority Revenue Refunding Bonds, VRDN, Series
D, 2.15% due 1/01/2018 (a) 25,000
1,000 New Jersey Wastewater Treatment Trust Loan, Revenue Bonds, Series A, 4.75%
due 7/01/1994 1,005
1,020 Parsippany Troy Hills Township, New Jersey, GO, 4.60% due 12/01/1994 1,033
15,502 Passaic County, New Jersey, BAN, 3.25% due 9/30/1994 15,535
Port Authority of New York and New Jersey, CP:
500 2.50% due 4/14/1994 500
4,100 2.50% due 4/21/1994 4,100
7,500 Port Authority of New York and New Jersey, Revenue Bonds (Versatile
Structure Obligation), DDN, Series 1, 2.80% due 8/01/2038 (a) 7,500
3,145 Red Bank, New Jersey, BAN, 2.43% due 5/16/1994 3,146
Salem County, New Jersey, Industrial Pollution Control Financing Authority
Revenue Bonds, Series A :
7,300 (du Pont (E.I.) de Nemours), VRDN, 2.60% due 3/01/2012 (a) 7,300
3,200 (Philadelphia Electric), CP, 2.60% due 5/06/1994 3,200
1,400 Union County, New Jersey, Pollution Control Finance Authority, Revenue
Refunding Bonds (Exxon Project), CP, AMT, 2.45% due 4/28/1994 1,400
</TABLE>
CMA NEW JERSEY 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>
Puerto Rico-- $12,500 Commonwealth of Puerto Rico, Government Development Bank, Revenue
14.7% Refunding Bonds, VRDN, 2% due 12/01/2015 (a) $ 12,500
28,400 Commonwealth of Puerto Rico, TRAN, Series A, 3% due 7/29/1994 28,437
Puerto Rico Industrial, Medical and Environmental, Pollution Control
Facilities Financing Authority Revenue Bonds:
3,300 (Anna G. Mendez Educational Project), CP, 2.55% due 5/06/1994 3,300
4,965 (Key Pharmaceuticals), Series A, 2.80% due 12/01/1994 4,970
2,040 (Merck & Co. Inc. Project), VRDN, Series A, 2.70% due 12/01/1994 (a) 2,039
2,800 (Reynolds Metal Company Project), VRDN, 2.90% due 9/01/1994 (a) 2,801
10,600 Puerto Rico Maritime Shipping Authority, CP, 2.10% due 5/06/1994 10,600
Total Investments (Cost--$439,627*)--99.5% 439,627
Other Assets Less Liabilities--0.5% 2,219
--------
Net Assets--100.0% $441,846
========
<FN>
(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 NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1994
<CAPTION>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$439,626,985) (Note 1a) $ 439,626,985
Cash. 17,067
Interest receivable 2,534,435
Deferred organization expenses (Note 1d) 11,771
Prepaid registration fees and other assets (Note 1d) 1,439
---------------
Total assets 442,191,697
---------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 188,817
Distributor (Note 2) 76,990
Beneficial interest redeemed 110 265,917
---------------
Accrued expenses and other liabilities 79,564
---------------
Total liabilities 345,481
---------------
Net Assets $ 441,846,216
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 44,189,461
Paid-in capital in excess of par 397,705,150
Undistributed investment income--net 657
Accumulated realized capital losses--net (49,052)
---------------
Net Assets--Equivalent to $1.00 per share based on 441,894,611 shares of
beneficial interest outstanding $ 441,846,216
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1994
<CAPTION>
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 10,030,257
Expenses:
Investment advisory fees (Note 2) $ 2,007,881
Distribution fees (Note 2) 500,084
Accounting services (Note 2) 77,262
Transfer agent fees (Note 2) 57,377
Printing and shareholder reports 44,119
Professional fees 39,784
Custodian fees 39,377
Registration fees (Note 1d) 29,171
Amortization of organization expenses (Note 1d) 8,858
Pricing fees 8,219
Trustees' fees and expenses 4,846
Other 3,333
---------------
Total expenses 2,820,311
---------------
Investment income--net 7,209,946
Realized Loss on Investments--Net (Note 1c) (33,363)
---------------
Net Increase in Net Assets Resulting from Operations $ 7,176,583
===============
</TABLE>
<PAGE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <C> <C>
Operations:
Investment income--net $ 7,209,946 $ 7,679,877
Realized gain (loss) on investments--net (33,363) 18,368
--------------- ---------------
Net increase in net assets resulting from operations 7,176,583 7,698,245
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (7,205,111) (7,675,535)
Realized gain on investments--net (42,440) (16,635)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (7,247,551) (7,692,170)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,451,838,155 1,330,654,723
Net asset value of shares issued to shareholders in reinvestment
of dividends and distributions (Note 1e) 7,227,727 7,691,903
--------------- ---------------
1,459,065,882 1,338,346,626
Cost of shares redeemed (1,406,051,737) (1,299,507,870)
--------------- ---------------
Net increase in net assets derived from beneficial
interest transactions 53,014,145 38,838,756
--------------- ---------------
Net Assets:
Total increase in net assets 52,943,177 38,844,831
Beginning of year 388,903,039 350,058,208
--------------- ---------------
End of year* $ 441,846,216 $ 388,903,039
=============== ===============
<FN>
*Undistributed investment income--net $ 657 $ 11,878
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NEW JERSEY 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. For the Year Ended 1990++ to
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 .03 .03
-------- -------- -------- --------
Total from investment operations .02 .02 .03 .03
-------- -------- -------- --------
Less dividends:
Investment income--net (.02) (.02) (.03) (.03)
-------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Investment Return 1.82% 2.21% 3.49% 4.95%*
======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .58% .58% .62% .52%*
======== ======== ======== ========
Expenses, net of reimbursement .70% .70% .74% .64%*
======== ======== ======== ========
Expenses .70% .70% .74% .76%*
======== ======== ======== ========
Investment income--net 1.80% 2.16% 3.42% 4.74%*
======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $441,846 $388,903 $350,058 $356,475
======== ======== ======== ========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA New Jersey 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 follow-
ing 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 re-
quirements 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 trans-
actions 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. Re-
alized 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 dis-
ounts 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) Reclassifications--Undistributed investment income--net in
the amount of $16,056 has been reclassified to accumulated re-
alized capital losses--net.
<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 cer-
tain 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 ex-
ceeding $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 Investment Adviser during any year
which will cause such expenses to exceed the pro rata expense lim-
itation 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 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 compensa-
tion 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 periods
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.
<AUDIT-REPORT>
CMA NEW JERSEY MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders, CMA New Jersey Municipal
Money Fund of CMA Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and liabil-
ities, including the schedule of investments, of CMA New Jersey
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.
<PAGE>
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position
of CMA New Jersey 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>
