CMA
CMA PENNSYLVANIA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1995
MERRILL LYNCH BULL LOGO
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
<PAGE>
CMA Pennsylvania
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1995, CMA Pennsylvania
Municipal Money Fund paid shareholders a net annualized yield of
3.29%*. As of September 30, 1995, the Fund's 7-day yield was 3.43%.
The Environment
After losing momentum through the second calendar quarter of 1995,
it now appears that the US economy has resumed a moderate growth
trend. Gross domestic product growth for the three months ended June
30 was revised to show that the economy expanded at a 1.1% pace,
rather than the 0.5% rate that was originally reported. The
employment report for August exceeded consensus expectations,
although most of the new jobs created were in the service sector,
reflecting the ongoing sluggishness in manufacturing. However,
durable goods orders rebounded somewhat in August, supported by
stronger automobile sales. Reflecting the trend of renewed economic
growth--and continued containment of inflationary pressures--the
Federal Reserve Board signaled no shift in monetary policy following
its September meeting.
<PAGE>
One of the major developments during the latter part of the period
under review was the strengthening of the US dollar relative to the
yen and the Deutschemark. Improving interest rate differentials
favoring the US currency, combined with coordinated central bank
intervention and more positive investor sentiment, have helped to
bolster the dollar in foreign exchange markets. Other factors that
appear to be improving the US dollar's outlook in the near term are
a pick-up in capital flows to the United States and the prospect of
increased capital outflows from Japan. However, it remains to be
seen if the US dollar's strengthening trend can continue without
significant improvements in the US budget and trade deficits.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investor interest will continue to focus on US
economic activity. Clear signs of a moderate, noninflationary
expansion could further benefit the US stock and bond markets. In
addition, should the current Federal budget deficit reduction
efforts now underway in Washington prove successful, the
implications would likely be positive for the US financial markets.
Investment Outlook and Strategy
Short-term interest rates continued to fall relatively unabated
during the six-month period ended September 30, 1995 as they have
since late 1994. Economic data releases indicated that the severely
restrictive monetary policy undertaken by the Federal Reserve Board
in 1994 had moderated the growth of the US economy. Additionally,
the news on inflation continued to be overwhelmingly favorable which
provided the backdrop for a falling interest rate environment.
Investors began to anticipate that the Federal Reserve Board would
eventually have to begin cutting interest rates to avoid the
possibility of a recession in the US economy. In fact, on July 6,
1995, the Federal Reserve Board cut its key interest rate by 25
basis points to 5.75% confirming that an economic switch had
occurred and signaling a change in monetary policy from a
restrictive to a more neutral stance. This series of events provided
the impetus for the shape of the yield curve to become flatter over
the course of the six-month period. For instance, while yields on
three-month US Treasury bills fell approximately 45 basis points for
the period, the yield on one-year US Treasury bills dropped nearly
95 basis points during the same period.
<PAGE>
The Commonwealth of Pennsylvania, which experienced economic
slowdown similar to other states during the six months ended
September 30, 1995, began to show signs of improvement toward the
latter part of the September period. The manufacturing sector
registered positive readings in the general activity indexes for
both August and September, while indicators for new orders and
shipments rose for the first time since March. In addition, current
inventory indexes indicate that manufacturers may have stopped
trying to reduce inventories. However, job growth lags the national
pace as the seasonally adjusted unemployment rate for September 1995
was 6.4%, compared to the national average of 5.6%.
Despite a weak economic picture for the Commonwealth, tax revenue
collections ended fiscal year 1995 on target with budget estimates.
This factor, combined with prudent fiscal management and monitoring
expense outlays, allowed Pennsylvania to end fiscal year 1995 with a
surplus of $40 million. Governor Tom Ridge used this surplus to
increase the State's rainy day fund balance by $111 million. These
positive results reduced Pennsylvania's need to borrow in the short-
term municipal market to finance daily operations and to pay down
$600 million in Tax Anticipation Notes (TANs) in June 1995. Governor
Ridge signed Pennsylvania's $16.2 billion 1996 fiscal budget, which
increases education spending by $143 million, allocates $109 million
to a rainy day reserve fund and lowers the corporate net income tax
by 1% to 9.99%, while at the same time increases spending by only
2.7%. Pennsylvania plans to issue approximately $500 million in TANs
in October, a decline of 17% over last year's issuance. Finally,
various Pennsylvania school districts, excluding Philadelphia,
issued $190 million in Tax and Revenue Anticipation Notes. This
amount is 38% below the comparable period in 1994.
During the six-month period ended September 1995, we employed a
cautious investment approach and kept the average life of the Fund
predominately in the 25-day-30-day range. Most Pennsylvania short-
term notes matured in June 1995, but replacement notes were limited
and came at yields lower than comparable general market notes. The
Fund, which holds a large percentage of variable rate demand notes,
benefited from a flat yield curve during the September period. With
variable rate demand notes remaining attractive in yield compared to
longer-term municipal notes, we selectively purchased various short-
term municipal notes that offer both a high coupon and enhance the
Fund's yield. We will continue to maintain a cautious approach to
the short-term municipal market during the upcoming period as long
as conditions warrant and there is no clear indication that the
Federal Reserve Board is about to embark on aggressive monetary
policy easing. We continue to look for opportunities to diversify
and closely monitor credit quality, while seeking to offer an
attractive tax-exempt yield for shareholders.
<PAGE>
In Conclusion
We thank you for your continued support of CMA Pennsylvania
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
(Kevin A. Schiatta)
Kevin A. Schiatta
Vice President and Portfolio Manager
October 31,1995
We are pleased to announce that Kevin A. Schiatta is responsible for
the day-to-day management of CMA Pennsylvania Municipal Money Fund.
Mr. Schiatta has been employed by Merrill Lynch Asset Management,
L.P. since 1979, and has been Vice President and Portfolio Manager
in the Tax-Exempt Bond Department since 1987.
<PAGE>
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
ACES SM Adjustable Convertible Extendable Securities
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Daily Adjustable Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania-- Allegheny County, Pennsylvania, Allegheny Hospital Development Authority
99.9% Revenue Bonds, VRDN (a):
$ 1,900 (Presbyterian University Health System), Series C, 4.40% due 3/01/2020 (b) $ 1,900
3,000 Refunding (Harmarville Rehabilitation Center Project),
4.50% due 7/01/2007 3,000
6,500 Allegheny County, Pennsylvania, IDA, PCR (Duquesne Light Project), CP,
Series A, 4.75% due 12/07/1995 6,500
6,000 Allegheny County, Pennsylvania, IDA, Refunding (Commercial Development
Parkway Center Project), VRDN, Series A, 4.65% due 5/01/2009 (a) 6,000
4,000 Allegheny County, Pennsylvania, Port Authority, Grant Anticipation Notes,
Series A, 3.875% due 6/28/1996 4,000
Beaver County, Pennsylvania, IDA, PCR, CP (Duquesne Light Project), AMT,
Series A:
4,200 3.95% due 10/23/1995 4,200
5,100 3.85% due 10/24/1995 5,100
900 Beaver County, Pennsylvania, IDA, PCR, Refunding (Duquesne Light
Project--Beaver Valley), VRDN, Series A, 4.35% due 8/01/2020 (a) 900
6,000 Beaver County, Pennsylvania, IDA, PCR, Refunding (Toledo Edison
Project), CP, Series E, 3.85% due 3/06/1996 6,000
2,600 Berks County, Pennsylvania, IDA, IDR (Valley Forge Company, Inc.
Project), VRDN, AMT, Series A, 4.85% due 9/01/2006 (a) 2,600
Bucks County, Pennsylvania, IDA, Revenue Bonds, VRDN (a):
2,000 (Edgecomb Metal Co.), 5.65% due 10/01/2009 2,000
6,600 (Thypin Steel Co.), 4.30% due 12/01/2015 6,600
Carbon County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Panther Creek Partners), CP, AMT:
6,200 Series A, 3.85% due 11/15/1995 6,200
1,000 Series B, 4.05% due 10/02/1995 1,000
1,000 Series B, 3.80% due 10/23/1995 1,000
3,550 Series B, 3.90% due 11/15/1995 3,550
12,540 Series B, 3.85% due 11/29/1995 12,540
3,300 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES, VRDN,
4.55% due 12/01/2009 (a) 3,300
5,300 Delaware County, Pennsylvania, IDA, PCR, Refunding (BP Exploration &
Oil), VRDN, 4.55% due 10/01/2019 (a) 5,300
Delaware County, Pennsylvania, IDA, PCR, Refunding (Philadelphia
Electric Company), CP (c):
4,500 Series A, 3.80% due 10/12/1995 4,500
2,000 Series C, 3.70% due 10/20/1995 2,000
2,500 Series C, 3.70% due 10/30/1995 2,500
Eagle Tax Exempt Trust, Pennsylvania, VRDN (a):
4,300 Series 94, 4.49% due 5/01/2008 4,300
6,000 Series A, 4.34% due 7/01/2025 6,000
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania Emmaus, Pennsylvania, General Authority Revenue Bonds (Local Government
(continued) Pool), VRDN (a):
$ 9,500 Series F, 4.45% due 3/01/2024 $ 9,500
10,000 Sub-Series B-8, 4.50% due 3/01/2024 10,000
1,000 Sub-Series B-12, 4.50% due 3/01/2024 1,000
11,300 Sub-Series C-8, 4.50% due 3/01/2024 11,300
5,000 Sub-Series C-9, 4.50% due 3/01/2024 5,000
7,200 Sub-Series D-10, 4.45% due 3/01/2024 7,200
2,000 Sub-Series D-12, 4.45% due 3/01/2024 2,000
6,800 Sub-Series F-6, 4.60% due 3/01/2024 6,800
3,500 Erie County, Pennsylvania, IDA, Revenue Bonds (McInnes Steel Co.), VRDN,
AMT, 4.55% due 11/01/2001 (a) 3,500
4,300 Geisinger, Pennsylvania, Health Systems Revenue Bonds, VRDN, Series B,
4.55% due 7/01/2022 (a) 4,300
300 Lehigh County, Pennsylvania, Sewer Authority Revenue Bonds, VRDN,
Series B, 4.30% due 3/15/2005 (a) 300
Montgomery County, Pennsylvania, IDA, Revenue Bonds:
1,700 (Merck & Co. Project), VRDN, Series A, 4.90% due 10/01/2017 (a) 1,700
4,640 (PECO Energy Co. Project), Series B, CP, 3.85% due 10/18/1995 4,640
3,850 Montour County, Pennsylvania, IDA, PCR (Merck & Co. Project), VRDN,
Series A, 4.65% due 10/01/2003 (a) 3,850
Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds, VRDN (a):
2,000 (Erie Forge & Steel Project), AMT, Series B-4, 4.65% due 12/01/1999 2,000
2,000 (Erie Plating Company Project), AMT, Series B-5, 4.65% due 12/01/2004 2,000
6,100 (Gutchess Hardwoods Project), Series B, 3.90% due 4/01/2005 6,100
5,000 (Leidy's, Inc. Project), AMT, Series D-7, 4.65% due 8/01/2022 5,000
1,250 (Wendt Dunnington Co. Project), AMT, Series G, 5% due 9/01/2010 1,250
16,900 Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds (B&W Ebensburg Project), VRDN, AMT, 4.45% due 12/01/2011 (a) 16,900
Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds (Piney Creek Project), VRDN, AMT (a):
14,000 Series A, 4.50% due 12/01/2011 14,000
900 Series C, 4.50% due 12/01/2011 900
Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, VRDN (a):
16,600 AMT, Series A, 4.50% due 1/01/2018 16,600
9,600 AMT, Series A, 4.50% due 12/01/2024 9,600
5,900 AMT, Series B, 4.50% due 7/01/2018 5,900
9,900 Series C, 4.50% due 7/01/2018 9,900
4,200 Series E, 4.50% due 7/01/2018 4,200
8,000 Pennsylvania State Higher Education, University Funding Obligation
Bonds (Temple University), 5% due 5/22/1996 8,035
4,100 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Temple University), VRDN, 4.55% due
10/01/2009 (a) 4,100
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1995 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania $ 4,000 Pennsylvania State Higher Educational Facilities Authority, Revenue
(concluded) Refunding Bonds (Thomas Jefferson University), ACES, Series C, 3.90%
due 2/26/1996 (a) $ 4,000
6,000 Pennsylvania State, VRDN, 4.49% due 5/01/2014 (a) 6,000
Philadelphia, Pennsylvania, Hospital and Higher Education Facilities
Authority, Hospital Revenue Bonds, VRDN (a):
8,000 (Children's Hospital of Philadelphia Project), 4.55% due 3/01/2027 8,000
2,400 (Friends Hospital), Series A, 4.50% due 3/01/2006 2,400
Philadelphia, Pennsylvania, IDA, Revenue Bonds, AMT (a):
10,200 (30th Street Station Project), VRDN, 4.05% due 1/01/2011 (b) 10,200
13,700 (Philadelphia Airport Hotel), UPDATES, VRDN, 4.40% due 12/01/2017 13,700
2,215 Philadelphia, Pennsylvania, Redevelopment Authority, M/F Housing Revenue
Refunding Bonds (Courts Project), VRDN, Series A, 4.35% due 6/01/2025 (a) 2,215
5,000 Philadelphia, Pennsylvania, School District, TRAN, UT, 4.50% due 6/28/1996 5,019
5,000 Philadelphia, Pennsylvania, TRAN, Series A, 4.50% due 6/27/1996 5,017
1,880 Pittsburgh, Pennsylvania, Urban Redevelopment Authority, S/F Mortgage
Revenue Bonds, AMT, Series C, 3.90% due 12/01/1995 1,880
Venango, Pennsylvania, IDA, Resource Recovery Revenue Bonds (Scrubgrass
Project), AMT, CP:
2,915 3.90% due 11/17/1995 2,915
2,000 3.70% due 12/18/1995 2,000
3,600 Refunding, Series A, 3.80% due 11/13/1995 3,600
5,500 Refunding, Series A, 3.90% due 11/15/1995 5,500
2,750 Refunding, Series B, 3.95% due 12/13/1995 2,750
2,050 Wallenpaupack, Pennsylvania, Area School District, TRAN,
4.18% due 6/28/1996 2,053
2,400 Washington County, Pennsylvania, Lease Authority Revenue Bonds, VRDN,
Series B-1, Sub-Series C, 4.40% due 12/15/2018 (a) 2,400
1,000 York County, Pennsylvania, IDA, IDR (Edgecomb Metals Co. Project), VRDN,
5.65% due 7/01/2009 (a) 1,000
Total Investments (Cost--$359,214*)--99.9% 359,214
Other Assets Less Liabilities--0.1% 533
----------
Net Assets--100.0% $ 359,747
==========
<PAGE>
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
September 30, 1995.
(b)MBIA Insured.
(c)FGIC Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF SEPTEMBER 30, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$359,213,862) (Note 1a) $ 359,213,862
Cash 172,029
Receivables:
Interest $ 1,717,112
Beneficial interest sold 104,724
Securities sold 19,975 1,841,811
--------------
Deferred organization expenses (Note 1d) 3,976
Prepaid registration fees and other assets (Note 1d) 13,870
--------------
Total assets 361,245,548
--------------
Liabilities:
Payables:
Securities purchased 1,200,000
Investment adviser (Note 2) 148,095
Distributor (Note 2) 92,808 1,440,903
--------------
Accrued expenses and other liabilities 57,157
--------------
Total liabilities 1,498,060
--------------
Net Assets $ 359,747,488
==============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 35,977,383
Paid-in capital in excess of par 323,796,451
Accumulated realized capital losses--net (Note 4) (26,346)
--------------
<PAGE>
Net Assets--Equivalent to $1.00 per share based on 359,773,834 shares of
beneficial interest outstanding $ 359,747,488
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 7,377,128
Expenses:
Investment advisory fees (Note 2) $ 927,965
Distribution fees (Note 2) 231,067
Transfer agent fees (Note 2) 57,110
Accounting services (Note 2) 31,171
Professional fees 25,200
Registration fees (Note 1d) 22,044
Printing and shareholder reports 17,664
Custodian fees 17,096
Pricing fees 3,983
Trustees' fees and expenses 2,024
Amortization of organization expenses (Note 1d) 2,002
Other 3,188
--------------
Total expenses 1,340,514
--------------
Investment income--net 6,036,614
--------------
Net Increase in Net Assets Resulting from Operations $ 6,036,614
==============
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: Sept. 30, 1995 March 31, 1994
<S> <C> <C>
Operations:
Investment income--net $ 6,036,614 $ 8,936,700
Realized loss on investments--net -- (12,217)
-------------- --------------
Net increase in net assets resulting from operations 6,036,614 8,924,483
-------------- --------------
Dividends to Shareholders (Note 1e):
Investment income--net (6,036,614) (8,935,523)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (6,036,614) (8,935,523)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 639,224,119 1,238,593,671
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 6,036,789 8,935,464
-------------- --------------
645,260,908 1,247,529,135
Cost of shares redeemed (639,148,249) (1,230,735,908)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 6,112,660 16,793,227
-------------- --------------
Net Assets:
Total increase in net assets 6,112,659 16,782,187
Beginning of period 353,634,829 336,852,642
-------------- --------------
End of period $ 359,747,488 $ 353,634,829
============== ==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended
September 30, For the Year Ended March 31,
Increase (Decrease) in Net Asset Value: 1995 1995 1994 1993 1992
<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 .03 .02 .02 .03
--------- --------- --------- --------- ---------
Total from investment operations .02 .03 .02 .02 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.02) (.03) (.02) (.02) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 3.29%* 2.65% 1.87% 2.29% 3.58%
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, excluding distribution fees .60%* .59% .59% .60% .65%
========= ========= ========= ========= =========
Expenses .72%* .71% .72% .72% .77%
========= ========= ========= ========= =========
Investment income--net 3.25%* 2.64% 1.85% 2.22% 3.47%
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 359,747 $ 353,635 $ 336,853 $ 318,954 $ 243,225
========= ========= ========= ========= =========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Pennsylvania 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. These unaudited
financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results
for the interim period presented. All such adjustments are of a
normal recurring nature. 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 and distributions 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.
<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., 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.
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 the year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment.
CMA PENNSYLVANIA 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, MLPF&S, MLFDS, and/or ML & Co.
<PAGE>
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 $26,000, of which $15,000 expires in 2002 and $11,000
expires in 2003. This amount will be available to offset like
amounts of any future taxable gains.
CMA PENNSYLVANIA
MUNICIPAL MONEY FUND
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
