CMA
CMA NEW JERSEY
MUNICIPAL MONEY FUND
Annual Report
March 31, 1999
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. An
investment in the Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Fund. Past performance results shown in this report should not be
considered a representation of future performance, which will
fluctuate. 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, 1999, CMA New Jersey Municipal Money
Fund paid shareholders a net annualized yield of 2.71%.* As of March
31, 1999, the Fund's 7-day yield was 2.32%.
Economic Environment
Stronger US equity markets characterized the six-month period ended
March 31, 1999 as continued US economic growth moved stock prices
higher. The NASDAQ Composite Index and the Dow Jones Industrial
Average registered healthy gains of 45% and 25%, respectively. The
Federal Reserve Board's decision to lower short-term interest rates
by an additional 50 basis points (0.50%) since September 30, 1998
also encouraged equity investors. Conversely, US Treasury prices
weakened as investors shifted their focus from the instability
abroad to the domestic economy. A flatter US Treasury yield curve
resulted with yields in the two-year--ten-year maturity range rising
sharply. Two-year, five-year and ten-year maturity yields rose 82
basis points, 102 basis points and 94 basis points, respectively, to
end the period at 4.98%, 5.10% and 5.23%, respectively.
Investment Strategy
CMA New Jersey Municipal Money Fund closed the six-month period
ended March 31, 1999 with a neutral average portfolio maturity of 40
days. The shape of the short-term municipal yield curve favored a
conservative average maturity since the shorter-term variable rate
sector performed well relative to longer-term investment options,
including municipal notes. In response to this, we largely invested
new assets and redeployed assets into variable rate issues, closing
the period with approximately two-thirds of the Fund's assets in
this sector. These investments provided the Fund with solid credit
quality and excellent liquidity while limiting interest rate
exposure. However, the municipal note market remained under downward
pressure as demand continued to outpace supply. For example, a New
Jersey municipal note with a one-year maturity ended the period in
the 3.00% yield range, which reflected a drop of 25 basis points in
yield since September 30, 1998. For the same period, the average 7-
day variable rate issue registered in the 3.05% yield range. Our
investment strategy for the past 12 months provided shareholders
with a portfolio of high credit quality, a stable net asset value
and competitive yield under challenging and quickly changing market
conditions.
[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 near term, we expect short-term municipal yields to be
strongly influenced by three factors. First, investor concern
continues to mount that the Federal Reserve Board will raise short-
term interest rates if the US economy continues to grow at its
current pace. The Federal Open Market Committee, which determines
short-term interest rate levels, will meet three times in the
upcoming six-month period and is likely to be closely monitored by
the investment community. Second, the summer months have
historically been a time of heavy municipal note issuance. We expect
several large issuers, including the states of California and Texas,
to come to market during June, July and August. However, in the past
several years, issuance has steadily decreased as state and local
governments' borrowing needs have lessened in response to higher-
than-projected tax receipts. Finally, the commencement of the income
tax payment period in April typically temporarily moves short-term
variable rate yields sharply higher. Heavy outflows from money
market funds generally occur as taxpayers remit their income tax
payments. These outflows cause dealers to raise short-term variable
rate yields in an effort to control inventories.
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,
(Terry K. Glenn)
Terry K. Glenn
President and Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Steven T. Lewis)
Steven T. Lewis
Vice President and Portfolio Manager
May 10, 1999
After more than 20 years of service, Arthur Zeikel recently retired
as Chairman of Merrill Lynch Asset Management, L.P. (MLAM). Mr.
Zeikel served as President of MLAM from 1977 to 1997 and as Chairman
since December 1997. Mr. Zeikel is one of the country's most
respected leaders in asset management and presided over the growth
of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500
billion. Mr. Zeikel will remain on CMA New Jersey Municipal Money
Fund's Board of Trustees. We are pleased to announce that Terry K.
Glenn has been elected President and Trustee of the Fund. Mr. Glenn
has held the position of Executive Vice President of MLAM since
1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in
wishing him well in his retirement from Merrill Lynch and are
pleased that he will continue as a member of the Fund's Board of
Trustees.
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
COP Certificates of Participation
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
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
VRDN Variable Rate Demand Notes
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey-- $ 6,600 Atlantic County, New Jersey, Improvement Authority Revenue Bonds (Pooled
73.3% Governmental Loan Program), ACES, 2.70% due 7/01/2026 (f) $ 6,600
2,000 Bayonne, New Jersey, Emergency Notes, 3.50% due 10/01/1999 2,002
8,800 Bernards Township, New Jersey, Sewer Authority, Sewer Revenue Refunding
Bonds, 3.10% due 12/15/1999 8,800
10,562 Brick Township, New Jersey, BAN, GO, 4% due 5/14/1999 10,567
Camden County, New Jersey, Improvement Authority Revenue Bonds, VRDN (f):
2,480 (Jewish Community Center Project), 2.90% due 12/01/2010 2,480
13,900 (Parkview Redevelopment Housing Project), AMT, 3% due 7/01/2026 13,900
13,000 Clipper Tax-Exempt, COP, VRDN, Series 1998-6, 3.11% due 10/01/2017 (d)(f) 13,000
14,595 Eagle Tax-Exempt Trust, New Jersey State Housing and Mortgage Finance
Agency, VRDN, Series 97C-3002, Class A, 3.40% due 10/01/2019 (a)(f) 14,595
19,970 Eagle Tax-Exempt Trust, New Jersey, VRDN, Series 94C-3005, 3.06% due
2/15/2007 (f) 19,970
6,000 East Brunswick Township, New Jersey, BAN, GO, 3.25% due 2/17/2000 6,018
12,500 Essex County, New Jersey, Improvement Authority, BAN, 3.50% due 3/31/2000 12,542
5,050 Essex County, New Jersey, Improvement Authority Revenue Bonds (Pooled
Governmental Loan Program), ACES, 2.55% due 7/01/2026 (f) 5,050
13,260 Floating Rate Trust Certificates, VRDN, Series 1994-E, 3% due 7/02/1999 (a)(f) 13,260
2,250 Hopewell Township, New Jersey, BAN, 4% due 6/30/1999 2,254
8,000 Hudson County, New Jersey, Improvement Authority Revenue Bonds
(Essential Purpose Pooled Government), VRDN, 2.95% due 7/15/2026 (f) 8,000
20,000 Jersey City, New Jersey, BAN, GO, 3.50% due 3/03/2000 20,090
13,650 Jersey City, New Jersey, GO, Refunding, 4% due 7/02/1999 13,659
2,000 Jersey City, New Jersey, Municipal Utilities Authority Project Notes,
4.25% due 7/30/1999 2,002
2,545 Mercer County, New Jersey, Improvement Authority Revenue Bonds
(Mercer Inc. Project), VRDN, 2.95% due 12/01/2018 (f) 2,545
19,600 Monmouth County, New Jersey, Improvement Authority Revenue Bonds
(Pooled Government Loan Program), ACES, 2.65% due 8/01/2016 (f) 19,600
Montclair, New Jersey, GO:
3,316 BAN, 4% due 4/16/1999 3,317
1,671 Temporary Notes, 4% due 4/16/1999 1,671
1,600 Morris County, New Jersey, General Improvement, GO, 4.50% due 8/15/1999 1,609
3,145 New Jersey Building Authority, State Building Revenue Refunding Bonds,
5% due 6/15/1999 3,154
New Jersey EDA, Dock Facility Revenue Refunding Bonds (Bayonne/IMTT
Project), VRDN (f):
1,000 Series A, 2.80% due 12/01/2027 1,000
1,800 Series B, 2.85% due 12/01/2027 1,800
4,350 Series C, 2.85% due 12/01/2027 4,350
New Jersey EDA, Economic Development Revenue Bonds, VRDN (f):
5,200 (400 International Drive Partners), 2.45% due 9/01/2005 5,200
8,925 (Benedictine Abbey of Newark), 3% due 12/01/2019 8,925
1,425 (Brach/Jersey Ave. Project), 2.75% due 5/01/2011 1,425
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (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 (f)(concluded):
(continued) $ 1,210 (Catholic Community Services), 2.85% due 6/01/2025 $ 1,210
3,000 (Danic Urban Renewal), 2.55% due 11/01/2007 3,000
3,200 (Delta Plastics Corp. Project), AMT, 3.20% due 10/01/2006 3,200
3,700 (Eatem Realty Company), AMT, 3.15% due 9/01/2013 3,700
3,505 (Filtra Corp. Project), AMT, 3% due 8/01/2015 3,505
1,415 (International Vitamin Corp. Project), AMT, 3% due 5/01/2003 1,415
1,600 (Office Court Associates Project), 3% due 4/01/2011 1,600
1,610 (Park Lane Association Project), AMT, 3.05% due 4/01/2010 1,610
1,200 (Saint Peter's Preparatory School), 2.95% due 1/01/2010 1,200
3,000 (Wyckoff Family YMCA Project), 3.10% due 10/01/2017 3,000
New Jersey EDA, Economic Development Revenue Refunding Bonds, VRDN (f):
3,635 (Church & Dwight), 2.55% due 12/01/2008 3,635
1,700 (Foreign Trade Zone Project), 2.40% due 12/01/2007 1,700
2,078 (RJB Associates Project), 2.95% due 8/01/2008 2,078
8,595 (Stolthaven Project), Series A, 2.90% due 1/15/2018 8,595
New Jersey EDA, Exempt Facilities Bonds (Keystone Projects), AMT, CP:
8,800 2.80% due 4/01/1999 8,800
13,700 2.95% due 4/19/1999 13,700
2,800 2.70% due 5/04/1999 2,800
New Jersey EDA, IDR, VRDN (f):
3,825 (Pennwell Holdings LLC Project), 2.70% due 12/01/2016 3,825
1,455 (Plastic Suppliers Inc. Project), AMT, 3.15% due 6/01/2006 1,455
4,000 New Jersey EDA, Industrial and Economic Development Revenue Bonds
(Tru Urban Renewal Co.), DATES, 3.15% due 4/01/2019 (f) 4,000
New Jersey EDA, Natural Gas Facilities Revenue Bonds, VRDN, AMT (a)(f):
35,000 (NUI Corp. Project), Series A, 2.90% due 6/01/2026 35,000
400 (New Jersey Natural Gas Co. Project), Series B, 2.90% due 8/01/2030 400
New Jersey EDA, Natural Gas Facilities, Revenue Refunding Bonds (New
Jersey Natural Gas Co. Project), VRDN, AMT (a)(f):
5,200 Series A, 2.70% due 9/01/2027 5,200
7,700 Series A, 2.80% due 8/01/2030 7,700
7,500 Series B, 2.60% due 1/01/2028 7,500
7,800 New Jersey EDA, PCR, Refunding (Public Service Electric & Gas Co.), VRDN,
Series A, 2.70% due 3/01/2012 (d)(f) 7,800
New Jersey EDA, PCR, VRDN (f):
4,835 (General Motors Corp. Project), 2.65% due 10/01/2000 4,835
7,450 (Merck & Co., Inc. Project), Series A, 3.25% due 10/01/2004 7,450
5,000 New Jersey EDA, Port Facility Revenue Bonds (Trailer Marine Crowle), VRDN,
3% due 2/01/2002 (f) 5,000
New Jersey EDA, Revenue Bonds (Economic Growth), VRDN (f):
995 AMT, Series A-1, 2.75% due 11/01/2016 995
3,630 AMT, Series E, 2.75% due 11/01/2006 3,630
3,000 AMT, Series H, 2.75% due 11/01/2016 3,000
1,210 Series F, 2.70% due 11/01/2016 1,210
1,500 Series G, 2.70% due 11/01/2016 1,500
New Jersey EDA, Revenue Bonds, VRDN (f):
4,580 (Accurate Box Co. Inc. Project), AMT, 3.05% due 11/01/2009 4,580
2,000 (Adam Spence Corp. Project), AMT, 3.10% due 9/01/2017 2,000
2,115 (Bethany Baptist Church Project), 2.90% due 3/01/2018 2,115
3,515 (Catholic Charities), 2.85% due 11/01/2012 3,515
875 (E.P. Henry Corp. Project), AMT, 2.95% due 3/01/2005 875
1,750 (Economic Growth--Patterson), AMT, 2.80% due 1/01/2005 1,750
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey New Jersey EDA, Revenue Bonds, VRDN (f)(concluded):
(continued) $ 2,700 (Economic Growth--Patterson), AMT, 2.80% due 1/01/2016 $ 2,700
4,600 (Hoffman-La Roche Inc. Project), AMT, 3% due 11/01/2011 4,600
1,000 (The Peddie School Project), 2.95% due 2/01/2026 1,000
1,000 (Saint James Preparatory & Social Services Project), 2.90% due
12/01/2027 1,000
2,400 (US Golf Association Project), 2.95% due 5/01/2023 2,400
New Jersey EDA, Revenue Refunding Bonds, VRDN (f):
2,810 (Joe & James Moreng), AMT, 3.10% due 3/01/2013 2,810
2,000 (The Peddie School Project), Series B, 2.95% due 2/01/2019 2,000
10,800 New Jersey EDA, Solid Waste Revenue Bonds (Disposal Facility-Newark
Recycling), VRDN, AMT, 3% due 12/01/2022 (f) 10,800
25,500 New Jersey EDA, Water Facilities Revenue Bonds, FLOATS, Series A-46,
3.15% due 7/01/2038 (b)(f) 25,500
3,400 New Jersey EDA, Water Facilities Revenue Refunding Bonds (United Water
New Jersey Inc. Project), VRDN, Series A, 2.15% due 11/01/2026 (a)(f) 3,400
63,820 New Jersey Sports and Exposition Authority, State Contract Revenue Bonds,
VRDN, Series C, 2.80% due 9/01/2024 (d)(f) 63,820
New Jersey State Educational Facilities Authority Revenue Bonds:
7,585 FLOATS, Series SG-48, 3.01% due 7/01/2026 (d)(f) 7,585
5,280 (Seton Hall University), Series C, 6.85% due 7/01/1999 (e)(g) 5,435
3,400 New Jersey State Higher Education Assistance Authority, Student Loan
Revenue Bonds (New Jersey Class Loan Program), VRDN, AMT, Series B, 3.75%
due 6/01/1999 (d)(f) 3,400
10,285 New Jersey State Tender Option Certificates, VRDN, Series 104, 3.20% due
2/15/2004 (f) 10,285
4,450 New Jersey State Transportation Trust Fund Authority Revenue Bonds
(Transportation System), Series B, 5% due 6/15/1999 4,463
New Jersey State Transportation Trust Fund Authority, Revenue Refunding
Bonds (Transportation System):
2,500 Series A, 5.50% due 6/15/1999 (a) 2,510
2,000 Series B, 5% due 6/15/1999 2,006
14,075 New Jersey State Transportation Trust Revenue Bonds, MSTR, Series 1998-64,
Class A, 3.20% due 8/05/1999 (c) 14,075
21,400 New Jersey State Turnpike Authority, Turnpike Revenue Refunding Bonds,
VRDN, Series D, 2.90% due 1/01/2018 (b)(f) 21,400
North Brunswick Township, New Jersey, BAN:
1,010 3.40% due 4/30/1999 1,010
2,923 4% due 8/27/1999 2,928
1,500 3.20% due 12/06/1999 1,502
1,490 3.10% due 12/29/1999 1,493
1,315 North Haledon, New Jersey, BAN, 3.85% due 8/12/1999 1,316
Passaic County, New Jersey, BAN, GO:
18,788 4.25% due 6/14/1999 18,805
7,500 4% due 9/24/1999 7,517
2,844 Perth Amboy, New Jersey, BAN, 3.75% due 12/21/1999 2,849
Rahway, New Jersey, BAN:
2,362 4.05% due 6/25/1999 2,363
3,700 GO, 3.25% due 12/23/1999 3,706
7,300 Salem County, New Jersey, Industrial Pollution Control Financing Authority
Revenue Bonds (E.I. du Pont de Nemours), VRDN, 3% due 3/01/2012 (f) 7,300
Salem County, New Jersey, Pollution Control Financing Authority, PCR,
Refunding, VRDN (d)(f):
2,000 (Atlantic City Electric), AMT, Series B, 2.70% due 7/15/2017 2,000
5,500 (Atlantic City Electric), Series A, 2.60% due 4/15/2014 5,500
3,600 (Public Service Electric and Gas), AMT, 2.75% due 4/01/2031 3,600
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
New Jersey $ 4,400 Somerset County, New Jersey, Industrial Pollution Revenue Refunding Bonds
(concluded) (Pollution Control--American Cyanamid), VRDN, 2.70% due 12/01/2006 (f) $ 4,400
12,605 South Jersey Transportation Authority, New Jersey, Subordinated BAN,
2.95% due 11/03/1999 12,605
State of New Jersey, CP, Series 1999-A:
10,000 2.65% due 4/06/1999 10,000
16,000 2.55% due 4/08/1999 16,000
5,000 3.15% due 6/01/1999 5,000
7,900 Trenton, New Jersey, School District Temporary Notes, GO, 3.50% due
12/21/1999 7,922
2,200 Union County, New Jersey, Industrial Pollution Control Financing Authority,
PCR, Refunding (Allied Signal Project), VRDN, 3.10% due 12/01/2020 (f) 2,200
Woodbridge Township, New Jersey, BAN, GO:
10,000 4% due 7/01/1999 10,011
15,000 Refunding, 4% due 7/30/1999 15,019
New York/ Port Authority of New York and New Jersey, CP:
New Jersey-- 10,200 AMT (Line of Credit), 2.70% due 4/14/1999 10,200
21.7% 8,980 Series A and B, 2.50% due 5/03/1999 8,980
1,030 Series A and B, 3.05% due 5/21/1999 1,030
7,725 Series A and B, 3.10% due 5/21/1999 7,725
Port Authority of New York and New Jersey, Special Obligation Revenue
Bonds (d)(f):
20,500 FLOATS, Series SG-94, 3.10% due 12/01/2017 20,500
20,800 MSTR, VRDN, AMT, Series SGA-69, 3.05% due 12/01/2022 (d) 20,800
Port Authority of New York and New Jersey, Special Obligation Revenue
Refunding Bonds, Versatile Structure Obligation, VRDN (f):
53,200 AMT, Series 1R, 2.95% due 8/01/2028 53,200
52,650 AMT, Series 4, 3.05% due 4/01/2024 52,650
32,400 AMT, Series 6, 3.05% due 12/01/2017 32,400
12,100 Series 2, 2.90% due 5/01/2019 12,100
1,400 Series 3, 2.85% due 6/01/2020 1,400
Puerto Rico-- Puerto Rico Commonwealth, Development Government Bank, CP:
4.6% 10,900 2.95% due 4/08/1999 10,900
1,600 2.40% due 5/10/1999 1,600
10,000 2.60% due 7/14/1999 10,000
6,500 Puerto Rico Commonwealth, Government Development Bank Revenue
Refunding Bonds, VRDN, 2.75% due 12/01/2015 (d)(f) 6,500
5,200 Puerto Rico Commonwealth Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, VRDN, Series A, 2.65% due
7/01/2028 (a)(f) 5,200
9,200 Puerto Rico Electric Power Authority, Power Revenue Bonds, GO, MSTR,
VRDN, Series SGA-43, 2.75% due 7/01/2022 (d)(f) 9,200
3,000 Puerto Rico Industrial Tourist Educational, Education and Environmental
Control Facility, Revenue Refunding Bonds (Ana G. Mendez University System
Project), VRDN, Series A, 2.95% due 1/01/2015 (f) 3,000
Total Investments (Cost--$1,013,088)--99.6% 1,013,088
Other Assets Less Liabilities--0.4% 4,147
----------
Net Assets--100.0% $1,017,235
==========
<FN>
(a)AMBAC Insured.
(b)FGIC Insured.
(c)FSA Insured.
(d)MBIA Insured.
(e)Prerefunded.
(f)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at March 31, 1999.
(g)BIG Insured.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1999
<S> <C> <C>
Assets:
Investments, at value (identified cost--$1,013,088,249) (Note 1a) $ 1,013,088,249
Cash 173,000
Interest receivable 6,818,184
Prepaid registration fees and other assets (Note 1d) 12,065
---------------
Total assets 1,020,091,498
---------------
Liabilities:
Payables:
Securities purchased $ 2,002,460
Investment adviser (Note 2) 421,078
Distributor (Note 2) 281,257
Beneficial interest redeemed 18 2,704,813
---------------
Accrued expenses and other liabilities 151,850
---------------
Total liabilities 2,856,663
---------------
Net Assets $ 1,017,234,835
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of
shares authorized $ 101,731,931
Paid-in capital in excess of par 915,587,051
Accumulated realized capital losses--net (Note 4) (84,147)
---------------
Net Assets--Equivalent to $1.00 per share based on 1,017,319,309 shares of
beneficial interest outstanding $ 1,017,234,835
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1999
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 27,418,573
Expenses:
Investment advisory fees (Note 2) $ 3,896,780
Distribution fees (Note 2) 1,033,214
Transfer agent fees (Note 2) 135,291
Registration fees (Note 1d) 99,041
Accounting services (Note 2) 94,658
Professional fees 62,212
Custodian fees 57,340
Printing and shareholder reports 35,910
Pricing fees 12,228
Trustees' fees and expenses 5,592
Other 8,777
---------------
Total expenses 5,441,043
---------------
Investment income--net 21,977,530
Realized Gain on Investments--Net (Note 1c) 55,803
---------------
Net Increase in Net Assets Resulting from Operations $ 22,033,333
===============
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: 1999 1998
<S> <C> <C>
Operations:
Investment income--net $ 21,977,530 $ 20,706,359
Realized gain (loss) on investments--net 55,803 (31,035)
--------------- ---------------
Net increase in net assets resulting from operations 22,033,333 20,675,324
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (21,977,530) (20,706,317)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (21,977,530) (20,706,317)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 2,979,834,969 2,799,906,641
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 21,979,457 20,706,788
--------------- ---------------
3,001,814,426 2,820,613,429
Cost of shares redeemed (2,784,632,689) (2,703,946,349)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 217,181,737 116,667,080
--------------- ---------------
Net Assets:
Total increase in net assets 217,237,540 116,636,087
Beginning of year 799,997,295 683,361,208
--------------- ---------------
End of year $ 1,017,234,835 $ 799,997,295
=============== ===============
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: 1999 1998 1997 1996 1995
<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 .03 .02
Realized gain (loss) on investments--net --++ --++ --++ --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .03 .03 .03 .03 .02
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.02)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.71% 2.97% 2.83% 3.07% 2.52%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .66% .66% .68% .68% .71%
========== ========== ========== ========== ==========
Investment income--net 2.65% 2.92% 2.78% 3.02% 2.51%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $1,017,235 $ 799,997 $ 683,361 $ 610,285 $ 525,747
========== ========== ========== ========== ==========
<FN>
++Amount is less than $.01 per share.
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 Fund's
financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of
management accruals and estimates. 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.
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 Incorporated ("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.
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, PSI, 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, 1999, the Fund had a net capital loss carryforward of
approximately $84,000, of which $16,000 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, 1999, 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, 1999 by correspondence with the custodian and broker. 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, 1999, 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 10, 1999
</AUDIT-REPORT>
CMA NEW JERSEY MUNICIPAL MONEY FUND
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, 1999 qualify as tax-
exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
CMA NEW JERSEY MUNICIPAL MONEY FUND
OFFICERS AND TRUSTEES
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--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
Donald C. Burke--Vice President and Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
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].
Gerald M. Richard, Treasurer of CMA New Jersey Municipal Money Fund
has recently retired. His colleagues at Merrill Lynch Asset
Management, L.P. join the Fund's Board of Trustees in wishing Mr.
Richard well in his retirement.
