CMA
CMA New Jersey
Municipal Money Fund
Annual Report
March 31, 1998
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
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, MA 02101
Transfer Agent
Merrill Lynch 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. Statements and
other information herein are as dated and are subject to change.
CMA New Jersey
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1998, CMA New Jersey Municipal Money
Fund paid shareholders a net annualized yield of 2.97%.* As of March
31, 1998, the Fund's 7-day yield was 2.89%.
Economic Environment and
Investment Strategy
For the six-month period ended March 31, 1998, US credit and equity
markets continued to post solid gains. The US Treasury market
benefited from the continuing problems in Pacific Rim economies, a
strong US dollar and weaker US exports, thus moving prices sharply
higher by mid-January 1998. Stock prices also rose with the Dow
Jones Industrial Average gaining 11% as investors began to view the
problems in Asia as having little impact on the continued strength
of the domestic economy. The US economy, led by housing,
transportation and consumer demand, continued to register above-
trend growth. The credit markets retraced some earlier gains as the
period closed with investors becoming concerned that the Federal
Reserve Board may have to raise short-term interest rates as early
as the second quarter of 1998 if the economy continues to grow at
its current pace. The yield on the 30-year US Treasury bond ended
the period at 5.94%, down 45 basis points (0.45%) from September 30,
1997 but off the six-month period low of 5.69%. The one-year US
Treasury bill ended March 31, 1998 at 5.40%, slightly lower than at
September 30, 1997 and off the period low of 5.18% recorded in early
January 1998.
During the six-month period ended March 31, 1998, the short-term
municipal market experienced strong asset growth with assets in tax-
exempt money funds increasing by 14.3% to $172.5 billion from $150.8
billion at September 30, 1997. By mid-period, strong demand lowered
the yield on MIG1-rated municipal notes with a June 1998 maturity to
3.45% from 3.75% at the beginning of the period. The yield on 7-day
variable rate notes also fell, registering an average 2.81% yield
compared to 3.72% at the beginning of the period.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
We maintained a neutral average portfolio maturity of 35 days--45
days during the six months ended March 31, 1998, which provided the
flexibility to adjust to changing market conditions. The shape of
the short-term municipal yield curve remained flat, offering little
incentive to extend the Fund's average life. We continued to utilize
the Fund's tax-exempt commercial paper and municipal note holdings
to manage its average portfolio maturity. We were able to lock in
attractive yields through investments in tax-exempt commercial paper
during periods of strong investor demand. Our focus in the note
sector concentrated in the six-month--nine-month maturity range. In
our opinion, this range offered the best opportunities to provide
solid credit quality and diversification, while limiting interest
rate exposure. Our investment strategy for the 12-month period ended
March 31, 1998 enabled us to achieve a gross yield better than the
average of similar New Jersey tax-exempt money funds for the same
period, while maintaining a stable net asset value.
Governor Christine Whitman was re-elected in the November 1997
election, narrowly defeating her Democratic challenger. The most
pressing issue facing the Governor in her second term will be
resolving the educational funding crisis facing the state's poorest
school districts. The projected cost of bringing these school
facilities to acceptable levels ranges from $1.8 billion to $2.7
billion. The affluent school districts will feel the brunt of the
cutbacks as more state aid is funneled to the poorer districts. In
addition to bringing the facilities up to standard, the state may
mandate districts to provide additional services such as full-time
pre-school and kindergarten in the poorer districts at an additional
cost of $320 million. Short-term municipal issuance within New
Jersey increased to $1.6 billion for the period from $1.1 billion in
the prior six-month period.
In the upcoming months, investors will watch closely second and
third quarter of 1998 data on the US economy as they look for signs
that Asian economic problems are impacting domestic growth and the
future possible course of short-term interest rates. Short-term
municipal investors will focus on three areas during the upcoming
six-months. First, money funds typically experience sizable outflows
beginning in mid-April because of income tax-related payments.
Variable rate yields tend to move higher during this period as
dealers raise interest rates to control inventories. The Fund is
currently well positioned to take advantage of the higher yields.
Second, the June--August period is historically one of heavy note
issuance with several large issuers, including the states of
California and Texas, expected to enter the market. The Fund's
average portfolio maturity is likely to increase modestly during
this period, as we anticipate being active in the New Jersey note
market. Finally, the Securities and Exchange Commission has issued
new technical amendments to Rule 2a-7, which are the guidelines
governing money market funds. The new guidelines take effect on July
1, 1998 and will impose new diversification requirements for state-
specific money funds. However, we do not anticipate a need for
changes to our portfolio strategy or structure to comply with the
new regulations.
In Conclusion
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
(Steven T. Lewis)
Steven T. Lewis
Vice President and Portfolio Manager
April 30, 1998
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
FLOATS Floating Rate Securities
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TRAN Tax and 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, 1998 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey-- $ 14,900 Atlantic City, New Jersey, BAN, UT, 4.25% due 8/27/1998 $ 14,926
95.7% 3,800 Atlantic County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Governmental Loan Program), ACES, 3.35% due 7/01/2026 (a) 3,800
8,500 Bernards Township, New Jersey, Sewage Authority, Sewer Revenue Refunding
Bonds, 3.85% due 12/15/1998 8,500
Camden County, New Jersey, Improvement Authority Revenue Bonds, VRDN (a):
2,780 (Jewish Community Center Project), 3.50% due 12/01/2010 2,780
13,900 (Parkview Redevelopment Housing Project), AMT, 3.70% due 7/01/2026 13,900
4,620 Clifton, New Jersey, BAN, UT, 4.25% due 6/25/1998 4,624
8,859 Denville Township, New Jersey, BAN, 4.25% due 6/16/1998 8,869
Eagle Tax Exempt Trust, New Jersey State Housing and Mortgage Finance
Agency, VRDN (a):
14,000 Series 97C-3002, Class A, 3.25% due 10/01/2019 14,000
1,000 Series 94C-3001, 3.51% due 10/01/2015 1,000
18,000 Series 94C-3001, 3.77% due 10/01/2015 18,000
Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Governmental Loan Program), ACES (a):
2,000 3.30% due 12/01/1998 2,000
5,050 3.30% due 7/01/2026 5,050
13,260 Floating Rate Trust Certificates, VRDN, Series 1994-E, 3.70% due 7/02/1999 (a) 13,260
8,000 Hudson County, New Jersey, Improvement Authority, Floating Rate Bonds
(Essential Purpose Pooled Government), VRDN, 3.70% due 7/15/2026 (a) 8,000
19,600 Monmouth County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Government Loan Program), ACES, 3.40% due 8/01/2016 (a) 19,600
10,000 New Brunswick, New Jersey, BAN, UT, 4.125% due 7/31/1998 10,014
New Jersey EDA, Dock Facility Revenue Refunding Bonds (Bayonne/IMTT
Project), VRDN, Series A (a):
2,200 3.55% due 12/01/2027 2,200
11,450 3.60% due 12/01/2027 11,450
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Economic Development Revenue Bonds, VRDN (a):
(continued) $ 4,900 (400 International Drive Partners), 3.55% due 9/01/2005 $ 4,900
525 (Astor Chocolate Corporation Project), AMT, 3.70% due 4/01/2002 525
3,300 (Atlanta--Danic Urban Renewal), 3.30% due 11/01/2007 3,300
9,125 (Benedictine Abbey of Newark), 3.70% due 12/01/2019 9,125
1,525 (Brach/Jersey Avenue Project), 3.35% due 5/01/2011 1,525
1,250 (Catholic Community Services), 3.55% due 6/01/2025 1,250
3,600 (Delta Plastics Corporation Project), 3.95% due 10/01/2006 3,600
2,369 (Filtra Corporation Project), 3.70% due 8/01/2015 2,369
1,700 (International Vitamin Corporation Project), AMT, 3.70% due 5/01/2003 1,700
1,700 (Office Court Associates Project), AMT, 3.70% due 4/01/2011 1,700
1,740 (Park Lane Associates Project), AMT, 3.70% due 4/01/2010 1,740
6,100 Refunding (Lawrenceville School Project), Series B, 3.30% due 7/01/2026 6,100
6,500 Refunding (Multi-Modal--Church & Dwight), 3.30% due 12/01/2008 6,500
2,198 Refunding (RJB Associates Project), 3.75% due 8/01/2008 2,198
1,225 (Saint Peter's Preparatory School), 3.80% due 1/01/2010 1,225
3,000 (Wyckoff Family YMCA Project), 3.80% due 10/01/2017 3,000
New Jersey EDA, Exempt Facilities Revenue Bonds, CP, AMT:
3,000 (Chambers Cogeneration), 3.10% due 4/01/1998 3,000
2,000 (Chambers Cogeneration), 3.35% due 4/06/1998 2,000
17,000 (Chambers Cogeneration), 3.50% due 5/01/1998 17,000
2,300 (Chambers Cogeneration), 3.20% due 5/04/1998 2,300
5,200 (Chambers Cogeneration), 3.30% due 6/09/1998 5,200
9,300 (Keystone Project), 3.20% due 5/01/1998 9,300
4,300 (Keystone Project), 3.20% due 5/04/1998 4,300
4,500 (Keystone Project), 3.25% due 5/14/1998 4,500
4,400 (Keystone Project), 3.30% due 6/09/1998 4,400
1,600 New Jersey EDA, IDR (Plastic Suppliers Inc. Project), VRDN, AMT, 3.80% due
6/01/2006 (a) 1,600
600 New Jersey EDA, Industrial and Economic Development Revenue Bonds
(Elizabeth Realty Urban Renewal Associates--1986 Project), VRDN, AMT,
4% due 6/01/2000 (a) 600
24,000 New Jersey EDA, Natural Gas Facilities Revenue Bonds (NUI Corporation
Project), VRDN, AMT, Series A, 3.60% due 6/01/2026 (a)(b) 24,000
New Jersey EDA, PCR, VRDN (a):
4,835 (General Motors Corp. Project), 3.50% due 10/01/2000 4,835
7,450 (Merck & Company), Series A, 3.90% due 10/01/2004 7,450
1,700 Refunding (Public Service Electric & Gas Company), Series A,
3.30% due 3/01/2012 (e) 1,700
5,000 New Jersey EDA, Port Facility Revenue Bonds (Trailer Marine Crowle), VRDN,
3.65% due 2/01/2002 (a) 5,000
New Jersey EDA, Revenue Bonds, VRDN (a):
4,905 (Accurate Box Company Inc. Project), AMT, 3.75% due 11/01/2009 4,905
2,150 (Adam Spence Corporation Project), AMT, 3.75% due 9/01/2017 2,150
2,200 (Bethany Baptist Church Project), 3.15% due 3/01/2018 2,200
3,700 (Catholic Charities), 3.70% due 11/01/2012 3,700
960 (E.P. Henry Corp. Project), 3.80% due 3/01/2005 960
1,035 (Economic Growth--Greater Mercer County), AMT, Series A-1, 3.40% due
11/01/2016 1,035
4,020 (Economic Growth--Greater Mercer County), AMT, Series E, 3.40% due
11/01/2006 4,020
3,295 (Economic Growth--Greater Mercer County), AMT, Series H, 3.40% due
11/01/2016 3,295
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Revenue Bonds, VRDN (a)(concluded):
(continued) $ 1,255 (Economic Growth--Greater Mercer County), Series F, 3.30% due
11/01/2016 $ 1,255
1,500 (Economic Growth--Greater Mercer County), Series G, 3.30% due
11/01/2016 1,500
2,800 (Economic Growth--Paterson), AMT, Series A, 3.35% due 1/01/2016 2,800
2,000 (Economic Growth--Paterson), AMT, Series B, 3.35% due 1/01/2005 2,000
4,600 (Hoffman-La Roche, Inc. Project), AMT, 3.45% due 11/01/2011 4,600
3,000 (Joe & James Moreng), AMT, 3.45% due 3/01/2013 3,000
1,000 (The Peddie School Project), 3.65% due 2/01/2026 1,000
2,000 (The Peddie School Project), Series B, 3.65% due 2/01/2019 2,000
1,000 (Saint James Prep and Social Services Project), 3.30% due 12/01/2027 1,000
6,800 New Jersey EDA, Water Facilities Revenue Bonds (Elizabethtown Water
Company Project), VRDN, AMT, Series A, 3.60% due 6/01/2027 (a)(b) 6,800
21,930 New Jersey Sports and Exposition Authority Revenue Bonds (State Contract),
VRDN, Series C, 3.45% due 9/01/2024 (a)(e) 21,930
New Jersey State Educational Facilities Authority Revenue Bonds:
7,585 FLOATS, Series SG-48, 3.65% due 7/01/2026 (a)(e) 7,585
2,000 (Higher Educational Facilities Trust Fund), Series A, 5.125% due
9/01/1998 (b) 2,011
3,400 New Jersey State Higher Educational Assistance Authority, Student Loan
Revenue Bonds (New Jersey Class Loan Program), AMT, Series B, 3.90% due
6/01/1998 (e) 3,400
10,000 New Jersey State Highway Authority, General Revenue Bonds (Garden State
Parkway), 7.25% due 1/01/1999 (c) 10,466
1,535 New Jersey State Housing and Mortgage Finance Agency Revenue Bonds,
VRDN, Series C-76, 3.80% due 10/01/2015 (a) 1,535
1,000 New Jersey State, Refunding, GO, UT, Series E, 5% due 7/15/1998 1,003
New Jersey State TRAN, CP, Series 97:
5,700 3.15% due 4/03/1998 5,700
5,800 3.15% due 4/06/1998 5,800
10,400 3.45% due 4/06/1998 10,400
9,400 3.75% due 4/06/1998 9,400
5,000 3.80% due 4/06/1998 5,000
4,300 3.75% due 4/07/1998 4,300
5,000 3.35% due 4/09/1998 5,000
4,000 3.40% due 5/12/1998 4,000
5,000 3.40% due 6/05/1998 5,000
5,000 3.40% due 6/09/1998 5,000
5,500 3.45% due 6/15/1998 5,500
10,900 New Jersey State Transportation Trust Fund Authority Refunding Bonds
(Transportation System), Series A, 5.50% due 6/15/1998 10,942
22,000 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds,
VRDN, Series D, 3.15% due 1/01/2018 (a)(d) 22,000
8,000 Ocean County, New Jersey, BAN, UT, 4.25% due 6/19/1998 8,009
18,028 Passaic County, New Jersey, BAN, UT, 4.25% due 6/16/1998 18,039
Port Authority of New York and New Jersey (Line of Credit), CP, AMT:
3,220 3.15% due 4/01/1998 3,220
2,800 3.25% due 5/01/1998 2,800
1,260 3.45% due 5/22/1998 1,260
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey Port Authority of New York and New Jersey, Special Obligation Revenue
(concluded) Bonds, VRDN, AMT (a):
$ 14,500 Floating Rate Receipts, Series SG-94, 3.80% due 12/01/2017 (e) $ 14,500
23,600 MSTR, Series SGA-69, 3.70% due 12/01/2022 23,600
Port Authority of New York and New Jersey, Special Obligation Revenue Bonds
(Versatile Structure Obligation), VRDN (a):
46,600 AMT, Refunding, Series 1R, 3.75% due 8/01/2028 46,600
38,400 AMT, Series 6, 3.70% due 12/01/2027 38,400
44,900 Series 4, 3.70% due 4/01/2024 44,900
7,300 Salem County, New Jersey, Industrial Pollution Control Financing Authority
Revenue Bonds (du Pont (E.I.) de Nemours), VRDN, Series A, 3.40% due
3/01/2012 (a) 7,300
Salem County, New Jersey, Pollution Control Financing Authority, PCR,
Refunding, VRDN (a)(e):
1,000 (Atlantic City Electric), AMT, Series B, 3.55% due 7/15/2017 1,000
5,500 (Atlantic City Electric), Series A, 3.45% due 4/15/2014 5,500
4,000 (Public Service Electric & Gas), AMT, 3.40% due 4/01/2031 4,000
11,660 Sussex County, New Jersey, BAN, UT, 4% due 2/09/1999 11,692
Union County, New Jersey, Industrial Pollution Control Financing Authority,
PCR, Refunding, VRDN (a):
2,200 (Allied Signal Project), 3.80% due 12/01/2020 2,200
1,100 (Exxon Project), 3.55% due 7/01/2033 1,100
1,500 West Orange, New Jersey, BAN, 4.25% due 11/17/1998 1,504
8,000 West Windsor/Plainsboro, New Jersey, Regional School District Temporary
Notes, UT, 4% due 1/27/1999 8,027
17,800 Woodbridge Township, New Jersey, BAN, UT, 4.25% due 7/01/1998 17,819
Puerto Rico-- 7,000 Puerto Rico Commonwealth, Government Development Bank, Refunding,
3.6% VRDN, 3.375% due 12/01/2015 (a)(e) 7,000
22,000 Puerto Rico Commonwealth, TRAN, Series A, 4.50% due 7/30/1998 22,056
Total Investments (Cost--$794,633*)--99.3% 794,633
Other Assets Less Liabilities--0.7% 5,364
--------
Net Assets--100.0% $799,997
========
<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, 1998.
(b)AMBAC Insured.
(c)Prerefunded.
(d)FGIC Insured.
(e)MBIA Insured.
*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, 1998
<S> <C> <C>
Assets:
Investments, at value (identified cost--$794,632,609) (Note 1a) $ 794,632,609
Cash 52,964
Interest receivable 5,770,940
Prepaid registration fees and other assets (Note 1d) 225,342
--------------
Total assets 800,681,855
--------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 337,709
Distributor (Note 2) 232,058 569,767
--------------
Accrued expenses and other liabilities 114,793
--------------
Total liabilities 684,560
--------------
Net Assets $ 799,997,295
==============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 80,013,757
Paid-in capital in excess of par 720,123,489
Accumulated realized capital losses--net (Note 4) (139,951)
--------------
Net Assets--Equivalent to $1.00 per share based on 800,137,573 shares of
beneficial interest outstanding $ 799,997,295
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1998
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 25,399,676
Expenses:
Investment advisory fees (Note 2) $ 3,390,860
Distribution fees (Note 2) 879,810
Transfer agent fees (Note 2) 127,236
Accounting services (Note 2) 79,096
Registration fees (Note 1d) 75,730
Professional fees 70,307
Custodian fees 46,738
Pricing fees 12,005
Trustees' fees and expenses 5,383
Other 6,152
--------------
Total expenses 4,693,317
--------------
Investment income--net 20,706,359
Realized Loss on Investments--Net (Note 1c) (31,035)
--------------
Net Increase in Net Assets Resulting from Operations $ 20,675,324
==============
See Notes to Financial Statements.
</TABLE>
<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: 1998 1997
<S> <C> <C>
Operations:
Investment income--net $ 20,706,359 $ 17,125,404
Realized loss on investments--net (31,035) (47,138)
-------------- --------------
Net increase in net assets resulting from operations 20,675,324 17,078,266
-------------- --------------
Dividends to Shareholders (Note 1e):
Investment income--net (20,706,317) (17,117,196)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (20,706,317) (17,117,196)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 2,799,906,641 2,177,998,397
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 20,706,788 17,116,053
-------------- --------------
2,820,613,429 2,195,114,450
Cost of shares redeemed (2,703,946,349) (2,121,998,967)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 116,667,080 73,115,483
-------------- --------------
Net Assets:
Total increase in net assets 116,636,087 73,076,553
Beginning of year 683,361,208 610,284,655
-------------- --------------
End of year $ 799,997,295 $ 683,361,208
============== ==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY 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: 1998 1997 1996 1995 1994
<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 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Total from investment operations .03 .03 .03 .02 .02
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.03) (.02) (.02)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.97% 2.83% 3.07% 2.52% 1.82%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .66% .68% .68% .71% .70%
========== ========== ========== ========== ==========
Investment income--net 2.92% 2.78% 3.02% 2.51% 1.80%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $ 799,997 $ 683,361 $ 610,285 $ 525,747 $ 441,846
========== ========== ========== ========== ==========
See Notes to Financial Statements.
</TABLE>
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) 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.
(f) Reclassification--Generally accepted accounting principles
require that certain components of net assets be adjusted to reflect
permanent differences between financial and tax reporting.
Accordingly, current year's permanent book/tax differences of $43
have been reclassified between accumulated net realized capital
losses and undistributed net investment income. 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"). 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.
CMA NEW JERSEY MUNICIPAL MONEY FUND
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 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, 1998, the Fund had a net capital loss carryforward of
approximately $140,000, of which $72,000 expires in 2003, $4,000
expires in 2004, $33,000 expires in 2005 and $31,000 expires in
2006. 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, 1998, 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 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, 1998 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 New Jersey Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1998, 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, 1998
</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, 1998 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, 1998.
Please retain this information for your records.
