CMA
CMA NEW JERSEY
MUNICIPAL MONEY FUND
Annual Report
March 31, 1995
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, MA 02101
<PAGE>
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
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 New Jersey
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA New Jersey Municipal Money
Fund paid shareholders a net annualized yield of 2.52%*. As of March
31, 1995, the Fund's 7-day yield was 3.20%.
The Environment
During the six-month period ended March 31, 1995, the perception
that the US economy was overheating and inflationary pressures were
increasing 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.
<PAGE>
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.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
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.
Investment Outlook and 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.
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 six-month period ended March 31, 1995 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 example,
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 March 31, 1995
for a net increase of approximately 60 basis points.
<PAGE>
During the six-month period ended March 31, 1995, Governor Christine
Todd Whitman presented her proposed budget for fiscal year 1995--
1996. The highlight of her proposal was an additional 15% cut in the
personal income tax. Governor Whitman cited an improving revenue
picture for the State that would enable her to fulfill her
gubernatorial campaign promise of reducing personal income taxes by
30% one year ahead of schedule. Some have questioned the prudence of
the cut as administration revenue projections have been challenged.
One independent state agency has, based on its own calculations,
projected a revenue shortfall of $680 million by July 1996. Muni-
cipalities have also voiced concern that the cut in personal income
tax will come at the expense of higher property taxes at the local
level. The State's economy did add 63,800 jobs in 1994, its largest
increase since 1988, but job growth on the national level has far
outpaced growth in the State.
During the six-month period ended March 31, 1995, short-term
issuance totaled $1.5 billion versus $532.4 million for the six-
month period ended September 30, 1994. The State entered the market
in December by issuing $900 million in short-term financing. The
issuance was composed of $600 million Tax Revenue Anticipation Notes
and $300 million in tax-exempt commercial paper. Both issues are due
to mature on June 15, 1995. At the beginning of the March period,
the average portfolio maturity of the Fund was in the 40-day area.
By the end of the March period, the average portfolio maturity was
in the 30-day range.
Most economists agree that the current tightening cycle by the
Federal Reserve Board is not yet complete. Although certain sectors
of the economy have shown signs of a slowdown, it is still not clear
whether the Federal Reserve Board is fully ahead of inflation. We
will maintain the Fund's defensive posture until the likelihood of
additional Federal Reserve Board tightening is diminished.
We thank you for your continued interest in CMA New Jersey 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
May 1, 1995
<PAGE>
Portfolio Abbreviations for CMA New Jersey Municipal Money Fund
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
EDA Economic Development Authority
GO General Obligation Bonds
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA NEW JERSEY 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>
New Jersey-- $ 3,800 Atlantic County, New Jersey, Improvement Authority Revenue Bonds (Pooled
93.3% Government Loan Program), ACES, 4.15% due 7/01/2026 (a) $ 3,800
1,400 Burlington Township, New Jersey, BAN, 4.25% due 6/30/1995 1,402
6,365 Camden County, New Jersey, BAN, Series A, 5.25% due 2/14/1996 6,389
17,500 Eagle Tax Exempt Trust, VRDN, Series 94C 3001, 4.25% due 10/01/2015 (a) 17,500
5,200 Elizabeth, New Jersey, BAN, 4.54% due 7/18/1995 5,202
Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), ACES (a):
8,000 4.15% due 12/01/1998 8,000
14,650 4.15% due 7/01/2026 14,650
13,260 Floating Rate Trust Certificates, VRDN, Series 1994 D, 4.25% due
7/02/1999 (a) 13,260
9,000 Galloway Township, New Jersey, BAN, 4.25% due 7/12/1995 9,008
9,410 Hudson County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Government Loan Program), VRDN, 4.35% due 7/15/2026 (a) 9,410
8,500 Jersey City, New Jersey, BAN, UT, 5% due 9/29/1995 8,524
5,700 Mercer County, New Jersey, Improvement Authority Revenue Bonds, VRDN,
4.15% due 11/01/1998 (a) 5,700
20,000 Mercer County, New Jersey, TAN, 4.375% due 4/12/1995 20,006
25,600 Monmouth County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Government Loan Program), ACES, 4.15% due 8/01/2016 (a) 25,600
4,300 Morristown, New Jersey, BAN, UT, 4.50% due 5/25/1995 4,305
New Jersey EDA, Dock Facility Revenue Refunding Bonds (Bayonne IMTT
Project), Series A, VRDN (a):
<PAGE> 9,100 4.20% due 12/01/2027 9,100
7,000 4.25% due 12/01/2027 7,000
New Jersey EDA, Economic Development Revenue Bonds, VRDN (a):
2,300 (400 International Drive Partners), 4.20% due 9/01/2005 2,300
9,625 (Benedictine Abbey of Newark), 4.10% due 12/01/2019 9,625
1,800 (Branch/Jersey Avenue Project), 4.05% due 5/01/2011 1,800
7,600 (Center for Aging, Applewood Estates Project), 4% due 12/01/2019 7,600
5,000 (Epitaxx, Inc. Project), AMT, 4.375% due 8/01/2016 5,000
1,850 (Office Courthouse Association Project), AMT, 4.20% due 4/01/2011 1,850
1,500 Refunding (Church & Dwight), 3.90% due 12/01/2008 1,500
2,500 Refunding (RJB Association Project), 4.15% due 8/01/2008 2,500
1,375 (Saint Peter's Preparatory School), 4.10% due 1/01/2010 1,375
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995(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
(continued) Bonds, VRDN (a):
$ 2,675 (East Meadow Corp.), Series A, 4.30% due 12/01/2006 $ 2,675
4,770 (East Meadow Corp.), Series B, 4.30% due 12/01/2006 4,770
1,200 (Elizabeth Realty Urban Renewal Associations-1986 Project),
AMT, 5% due 6/01/2000 1,200
3,200 (Marriott Corp. Project), 4% due 10/01/2014 3,200
4,100 (Seton Company Project), 3.95% due 9/01/2005 4,100
5,200 (Toys 'R' Us, Inc. Project), 3.70% due 4/01/2019 5,200
7,450 New Jersey EDA, PCR (Merck & Co.), VRDN, Series A, 4.375% due
10/01/2004 (a) 7,450
1,900 New Jersey EDA, Port Facility Revenue Bonds (Trailer Marine Crowle),
VRDN, 3.85% due 2/01/2002 (a) 1,900
New Jersey EDA Revenue Bonds:
1,625 (Akma, Inc.), VRDN, AMT, Series I, 4% due 8/01/2014 (a) 1,625
2,150 (Andy Boy), VRDN, AMT, Series H, 4% due 8/01/2004 (a) 2,150
9,000 (Chambers Cogeneration Project), CP, AMT, 4.05% due 4/12/1995 9,000
4,500 (Chambers Cogeneration Project), CP, AMT, 3.75% due 5/11/1995 4,500
1,305 (E.P. Henry Corp. Project), VRDN, 4.20% due 3/01/2005 (a) 1,305
10,900 (Hoffman-La Roche Inc. Project), VRDN, AMT, 4.10% due
11/01/2011 (a) 10,900
1,000 (Keystone Project), CP, 4.05% due 4/07/1995 1,000
2,000 (Peddie School Project), VRDN, Series B, 4.15% due 2/01/2019 (a) 2,000
38,100 New Jersey Sports and Exposition Authority State Contract Revenue
Bonds, VRDN, Series C, 4% due 9/01/2024 (a) 38,100
New Jersey State, GO:
2,500 7% due 4/01/1995 (b) 2,500
<PAGE> 3,000 CP, 3.80% due 4/03/1995 3,000
20,000 CP, 3.55% due 4/12/1995 20,000
5,000 CP, 3.60% due 4/12/1995 5,000
17,000 TRAN, Series A, 5% due 6/15/1995 17,031
8,950 New Jersey State Turnpike Authority, Turnpike Revenue Refunding
Bonds, VRDN, Series D, 3.85% due 1/01/2018 (a) 8,950
1,500 North Brunswick Township, New Jersey, BAN, 5.04% due 7/26/1995 1,504
4,405 Paramus, New Jersey, BAN, 3.82% due 7/05/1995 4,405
6,000 Passaic County, New Jersey, BAN, UT, 4.50% due 7/06/1995 6,011
Port Authority of New York and New Jersey, CP, AMT:
405 3.80% due 5/05/1995 405
6,320 4% due 5/05/1995 6,320
3,540 3.75% due 5/10/1995 3,540
Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligation), VRDN (a):
52,000 Series 1, 4.40% due 8/01/2028 52,000
5,700 Series 2, 4.10% due 5/01/2019 5,700
3,000 Princeton Township, New Jersey, BAN, 4.50% due 8/31/1995 3,002
</TABLE>
<TABLE>
CMA NEW JERSEY 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>
New Jersey Rutgers State University of New Jersey, Revenue Bonds:
(concluded) $ 1,000 Series 1, 7.625% due 5/01/1995 (c) $ 1,023
1,355 Series A, 6.60% due 5/01/1995 (b) 1,359
Salem County, New Jersey, Industrial Pollution Control Financing
Authority Revenue Bonds:
7,300 (du Pont (E.I.) de Nemours), VRDN, Series A, 4% due 3/01/2012 (a) 7,300
3,200 (Philadelphia Electric), CP, Series A, 3.70% due 4/06/1995 3,200
1,760 Somerset County, New Jersey, GO, UT, 5.875% due 12/01/1995 1,773
5,000 South Brunswick Township, New Jersey, Board of Education Temporary
Notes, 4.625% due 4/28/1995 5,002
Union County, New Jersey, Industrial Pollution Control Financing
Authority, PCR, Refunding:
2,200 (Allied Signal Project), VRDN, 4.30% due 12/01/2020 (a) 2,200
6,000 (Exxon Project), CP, AMT, 3.95% due 5/10/1995 6,000
19,700 (Exxon Project), VRDN, 4.20% due 7/01/2033 (a) 19,700
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank Revenue
6.0% Bonds, CP:
12,500 3.70% due 5/09/1995 12,500
5,000 3.75% due 5/10/1995 5,000
3,400 Puerto Rico Commonwealth, Government Development Bank, Revenue
Refunding Bonds, VRDN, 4.10% due 12/01/2015 (a) 3,400
<PAGE> Puerto Rico Industrial, Medical and Environmental Pollution Control
Facilities, Financing Authority Revenue Bonds:
3,300 (Ana G. Mendez Educational Project), 3.65% due 4/06/1995 3,300
2,800 (Reynolds Metal Co. Project), VRDN, 4% due 9/01/1995 (a) 2,800
4,600 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control Facilities Financing Authority, CP, Series A, 3.65% due
4/06/1995 4,600
Total Investments (Cost--$522,006*)--99.3% 522,006
Other Assets Less Liabilities--0.7% 3,741
----------
Net Assets--100.0% $ 525,747
==========
<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.
(b)Escrowed to maturity.
(c)Prerefunded.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$522,005,944) (Note 1a) $ 522,005,944
Cash 254,444
Interest receivable 3,959,069
Deferred organization expenses (Note 1d) 2,912
Prepaid registration fees and other assets (Note 1d) 13,805
---------------
Total assets 526,236,174
---------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 221,584
Distributor (Note 2) 155,108 376,692
---------------
Accrued expenses and other liabilities 112,276
---------------
Total liabilities 488,968
---------------
Net Assets $ 525,747,206
===============
<PAGE>
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 52,581,909
Paid-in capital in excess of par 473,237,178
Accumulated realized capital losses--net (Note 4) (71,881)
---------------
Net Assets--Equivalent to $1.00 per share based on 525,819,087 shares of
beneficial interest outstanding $ 525,747,206
===============
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 14,846,642
Expenses:
Investment advisory fees (Note 2) $ 2,299,467
Distribution fees (Note 2) 573,696
Transfer agent fees (Note 2) 99,854
Accounting services (Note 2) 86,286
Registration fees (Note 1d) 60,722
Professional fees 57,569
Printing and shareholder reports 46,936
Custodian fees 33,868
Amortization of organization expenses (Note 1d) 8,858
Pricing fees 8,204
Trustees' fees and expenses 5,882
Other 7,776
---------------
Total expenses 3,289,118
---------------
Investment income--net 11,557,524
Realized Loss on Investments--Net (Note 1c) (30,343)
---------------
Net Increase in Net Assets Resulting from Operations $ 11,527,181
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NEW JERSEY 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 $ 11,557,524 $ 7,209,946
Realized loss on investments--net (30,343) (33,363)
--------------- ---------------
Net increase in net assets resulting from operations 11,527,181 7,176,583
--------------- ---------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (11,550,666) (7,205,111)
Realized gain on investments--net -- (42,440)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (11,550,666) (7,247,551)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,629,827,901 1,451,838,155
Net asset value of shares issued to shareholders in reinvestment of
dividends and distributions (Note 1e) 11,550,723 7,227,727
--------------- ---------------
1,641,378,624 1,459,065,882
Cost of shares redeemed (1,557,454,149) (1,406,051,737)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 83,924,475 53,014,145
--------------- ---------------
Net Assets:
Total increase in net assets 83,900,990 52,943,177
Beginning of year 441,846,216 388,903,039
--------------- ---------------
End of year* $ 525,747,206 $ 441,846,216
=============== ===============
<FN>
*Undistributed investment income--net (Note 1f) $ -- $ 657
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived July 30,
from information provided in the financial statements. 1990++ to
For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 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 .03 .03
--------- --------- --------- --------- ---------
Total from investment operations .02 .02 .02 .03 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.02) (.02) (.02) (.03) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.52% 1.82% 2.21% 3.49% 4.95%*
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .59% .58% .58% .62% .52%*
========= ========= ========= ========= =========
Expenses, net of reimbursement .71% .70% .70% .74% .64%*
========= ========= ========= ========= =========
Expenses .71% .70% .70% .74% .76%*
========= ========= ========= ========= =========
Investment income--net 2.51% 1.80% 2.16% 3.42% 4.74%*
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 525,747 $ 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 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.
(f) Reclassification--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 $7,515 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.
<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"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.
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.
CMA NEW JERSEY MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 pro-cessing share orders and administering shareholder
accounts.
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.
<PAGE>
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 $72,000, all of which expires in 2003. This amount
will be available to offset like amounts of any future taxable
gains.
<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
liabilities, including the schedule of investments, of CMA New
Jersey 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.
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. 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.
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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, 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
May 1, 1995
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
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, 1995 qualify as tax-
exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed during the
Fund's taxable year ended March 31, 1995.
Please retain this information for your records.
