CMA
CMA PENNSYLVANIA
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
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
<PAGE>
[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 Pennsylvania
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA Pennsylvania Municipal Money
Fund paid shareholders a net annualized yield of 2.65%*. As of March
31, 1995, the Fund's 7-day yield was 3.34%.
The Environment
During the six months 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.
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.
<PAGE>
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
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.
Although the Commonwealth of Pennsylvania continued its economic
expansion over the six-month period ended March 31, 1995, evidence
of a slowdown surfaced during the last three months. The
manufacturing sector, which has been a good performer for the
Commonwealth, has been one example of this slowdown. General
manufacturing activity indexes have been declining, while both
unfilled orders and delivery times have shown weakening activity.
<PAGE>
Despite slowing economic activity over the last three months, the
Commonwealth continued to maintain a positive revenue stream. Tax
revenue collections for fiscal year 1995 are running 2.7%, or $301
million, above 1995 budget estimates. An annual audit of the
Commonwealth's finances for fiscal year 1994 confirmed a $79 million
unreserved/undesignated ending fund balance. This was accomplished
despite total state expenditures increasing 4.1% while total
revenues increased only 1.9%. To counter this trend, newly elected
Governor Tom Ridge issued a freeze in capital spending until a
thorough review of the Commonwealth's finances can be completed. In
addition, as part of a campaign commitment, Governor Ridge has begun
efforts to increase Pennsylvania exports of products and services
to foreign markets. His commitment will look to keep economic
expansion on track within the Commonwealth as well as create up to
100,000 new jobs. Governor Ridge also proposed his first budget plan
for fiscal year 1996 which includes tax cuts of up to $215 million,
primarily from a reduction in the corporate tax rate to 9.99%
retroactive to January 1, 1995 from 10.99%.
With tax collections running ahead of 1995 budget estimates, the
Commonwealth's issuance of $600 million tax anticipation notes in
October 1994 has been sufficient to manage daily operations. The
various Pennsylvania cities and towns provided the balance of short-
term municipal notes by issuing their annual tax and revenue
anticipation notes (TRANs) in the amount of $302 million,
representing a 13% increase over the comparable period last year.
CMA Pennsylvania Municipal Money Fund continued to maintain a
defensive strategy during the six months ended March 31, 1995.
During the period, we allowed the average life of the Fund to
decline to the 25-day range from the 50-day range at December 31,
1994. We did not purchase any of the annual local Pennsylvania TRANs
as we maintained a higher percentage of variable rate demand notes
and kept tax-exempt commercial paper in the 30-day range. This was
in response to the uncertainty over whether the Federal Reserve
Board was finished tightening monetary policy, combined with a
declining US dollar, and the Mexican peso crisis, all of which
created an atmosphere where a more conservative approach was
warranted. We continue to closely monitor credit quality while
seeking to offer shareholders an attractive tax-exempt yield.
In Conclusion
We thank you for your 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
<PAGE>
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
May 1, 1995
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
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania-- Allegheny County, Pennsylvania, Allegheny Hospital Development Authority
100.4% Revenue Bonds, VRDN (a):
$ 1,500 (Presbyterian University Health System), Series A, 4.20% due 3/01/2020 $ 1,500
4,700 (Presbyterian University Health System), Series B, 4.20% due 3/01/2020 4,700
6,900 (Presbyterian University Health System), Series C, 4.20% due 3/01/2020 6,900
1,400 (Presbyterian University Health System), Series D, 4.20% due 3/01/2020 1,400
3,000 Refunding (Harmarville Rehabilitation Center Project), 4.20% 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
5,500 Allegheny County, Pennsylvania, IDA, Refunding (Commercial Development
Parkway Center Project), VRDN, Series A, 4.35% due 5/01/2009 (a) . 5,500
7,000 Allegheny County, Pennsylvania, Port Authority Grant Anticipation
Notes, 4.10% due 7/03/1995 7,000
<PAGE> Beaver County, Pennsylvania, IDA, PCR, CP (Duquesne Light Project),
AMT, Series A:
2,500 4.20% due 4/07/1995 2,500
2,100 4.25% due 4/07/1995 2,100
3,000 4.15% due 5/12/1995 3,000
Beaver County, Pennsylvania, IDA, PCR, Refunding (Duquesne Light
Project), VRDN (a):
900 (Beaver Valley), 4.25% due 8/01/2020 900
1,300 (Mansfield), Series B, 4.25% due 8/01/2009 1,300
2,000 Beaver County, Pennsylvania, IDA, PCR, Refunding (Toledo Edison
Project), CP, Series E, 4.20% due 5/03/1995 2,000
2,765 Berks County, Pennsylvania, IDA, IDR (Valley Forge Company, Inc.,
Project), VRDN, AMT, Series A, 4.75% due 9/01/2006 (a) 2,765
2,000 Bucks County, Pennsylvania, IDA, Revenue Bonds (Edgecomb Metal Co.),
VRDN, 4.25% due 10/01/2009 (a) 2,000
Carbon County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Panther Creek Partners), CP, AMT:
2,000 Series A, 4.25% due 4/07/1995 2,000
2,600 Series A, 4.30% due 4/07/1995 2,600
1,600 Series A, 4.15% due 5/11/1995 1,600
2,550 Series B, 4.25% due 4/07/1995 2,550
7,500 Series B, 4.35% due 5/12/1995 7,500
1,900 Series B, 4.15% due 5/15/1995 1,900
4,235 Cumberland County, Pennsylvania, Municipal Authority, Revenue Refunding
Bonds (United Methodist Homes for the Aging), VRDN, 4.20% due
6/01/2019 (a) 4,235
6,100 Delaware County, Pennsylvania, Health Care Authority Revenue Bonds
(Capital Asset), VRDN, Series B, 4.25% due 7/01/2015 (a) 6,100
9,500 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project),
UPDATES, 4.20% due 12/01/2009 (a) 9,500
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania Delaware County, Pennsylvania, IDA, PCR, Refunding (Philadelphia
(continued) Electric Company), CP:
$ 4,000 Series A, 4.10% due 4/06/1995 $ 4,000
1,500 Series C, 4% due 4/28/1995 1,500
2,500 Series C, 4.35% due 5/24/1995 2,500
Eagle Tax Exempt Trust, Pennsylvania, VRDN (a):
4,300 Series 94, 4.35% due 5/01/2008 4,300
6,100 Series A, 4.15% due 7/01/2025 6,100
Emmaus, Pennsylvania, General Authority Revenue Bonds (Local
Government Pool), VRDN (a):
1,500 Series A, 4.25% due 3/01/2024 1,500
<PAGE> 10,000 Series B, 4.25% due 3/01/2024 10,000
15,900 Series F, 4.25% due 3/01/2024 15,900
3,500 Erie County, Pennsylvania, IDA, Revenue Bonds (McInnes Steel Co.),
VRDN, AMT, 4.30% due 11/01/2001 (a) 3,500
1,800 Geisinger, Pennsylvania, Health Systems Revenue Bonds, VRDN, Series
E, 4.20% due 7/01/2022 (a) 1,800
300 Lehigh County, Pennsylvania, Sewer Authority Revenue Bonds, VRDN,
Series B, 4.10% due 3/15/2005 (a) 300
1,700 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Merck & Co.
Project), VRDN, Series A, 4.625% due 10/01/2017 (a) 1,700
3,850 Montour County, Pennsylvania, IDA, PCR (Merck & Co. Project), VRDN,
Series A, 4.375% due 10/01/2003 (a) 3,850
Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds, VRDN (a):
1,000 AMT, Series A1, 4.35% due 8/01/2004 1,000
1,000 AMT, Series A4, 4.35% due 8/01/2001 1,000
3,000 AMT, Series B2, 4.35% due 12/01/2008 3,000
800 AMT, Series D4, 4.35% due 12/01/1997 800
900 AMT, Series D10, 4.35% due 7/01/2011 900
350 (Carson Industries Project), AMT, Series B2, 4.35% due 6/01/2000 350
2,000 (Erie Forge & Steel Project), Series B4, 4.35% due 12/01/1999 2,000
2,000 (Erie Plating Company Project), Series B5, 4.35% due 12/01/2004 2,000
1,400 (Kerner Co. Project), Series B4, 4.35% due 6/01/2007 1,400
2,100 (Kyowa America Project), Series B5, 4.35% due 6/01/2002 2,100
1,100 (Robert & Karen Wickerham Project), AMT, Series B7, 4.35% due
5/01/2005 1,100
450 (Winter Welding Project), Series B8, 4.35% due 6/01/2007 450
12,700 Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds (B&W Ebensburg Project), VRDN, AMT, 4.25% due 12/01/2011 (a) 12,700
Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds (Piney Creek Project), VRDN, AMT (a):
14,000 Series A, 4.25% due 12/01/2011 14,000
900 Series C, 4.25% due 12/01/2011 900
Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, VRDN (a):
17,400 AMT, Series A, 4.20% due 1/01/2018 17,400
9,000 AMT, Series A, 4.20% due 12/01/2024 9,000
5,900 AMT, Series B, 4.20% due 7/01/2018 5,900
11,900 Series C, 4.20% due 7/01/2018 11,900
4,200 Series E, 4.20% due 7/01/2018 4,200
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania $ 7,000 Pennsylvania State Higher Education, University Funding Obligation
(concluded) Bonds (Temple University), 4.50% due 5/24/1995 $ 7,007
Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds, VRDN (a):
3,000 (Carnegie-Mellon University), Series A, 4.10% due 11/01/2015 3,000
5,400 (Temple University), 4.20% due 10/01/2009 5,400
1,500 Pennsylvania State Higher Educational Facilities Authority, Health
Services Revenue Bonds (University of Pennsylvania), ACES, Series B,
4.20% due 1/01/2024 (a) 1,500
13,000 Pennsylvania State Higher Educational Facilities Authority, Revenue
Refunding Bonds (Thomas Jefferson University), ACES, Series B, 3.70%
due 6/01/1995 (a) 13,000
Philadelphia, Pennsylvania, Hospital and Higher Education Facilities
Authority, Hospital Revenue Bonds, VRDN (a):
3,600 (Children's Hospital of Philadelphia Project), 4.20% due 3/01/2027 3,600
2,400 (Friends Hospital), Series A, 4.20% due 3/01/2006 2,400
4,900 Refunding (Pennsylvania Hospital), Series C, 4% due 7/01/1995 4,900
6,400 Philadelphia, Pennsylvania, IDA, M/F Mortgage Revenue Refunding Bonds
(Harbor View Towers), VRDN, 4.20% due 11/01/2027 (a) 6,400
Philadelphia, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (a):
10,200 (30th Street Station Project), 3.50% due 1/01/2011 10,200
13,700 (Philadelphia Airport Hotel), 4.15% due 12/01/2017 13,700
8,000 Philadelphia, Pennsylvania, School District TRAN, UT, 4.75% due
6/30/1995 8,011
15,500 Philadelphia, Pennsylvania, TRAN, Series A, 4.75% due 6/15/1995 15,526
4,240 Pittsburgh, Pennsylvania, Urban Redevelopment Authority, S/F Mortgage
Revenue Bonds, AMT, Series C, 4.45% due 6/01/1995 4,240
2,000 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Northeastern Power Company), VRDN, 4.20% due 12/01/2011 (a) 2,000
Venango, Pennsylvania, IDA, Resource Recovery Revenue Bonds (Scrubgrass
Project):
2,915 AMT, Series 1993, 4.25% due 4/07/1995 2,915
2,950 AMT, Series A, 4.25% due 4/07/1995 2,950
2,550 AMT, Series A, 4.30% due 4/07/1995 2,550
2,000 AMT, Series A, 4.35% due 5/12/1995 2,000
2,750 Series A, 3.95% due 5/11/1995 2,750
1,000 York County, Pennsylvania, IDA, IDR (Edgecomb Metals Co. Project), VRDN,
4.25% due 7/01/2009 (a) 1,000
Total Investments (Cost--$355,149*)--100.4% 355,149
Liabilities in Excess of Other Assets--(0.4%) (1,514)
----------
Net Assets--100.0% $ 353,635
==========
<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.
*Cost for Federal income tax purposes.
<PAGE>
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$355,148,972) (Note 1a) $ 355,148,972
Cash 163,050
Interest receivable 2,697,993
Deferred organization expenses (Note 1d) 3,976
Prepaid registration fees and other assets (Note 1d) 13,999
---------------
Total assets 358,027,990
---------------
Liabilities:
Payables:
Securities purchased $ 4,047,134
Investment adviser (Note 2) 152,360
Distributor (Note 2) 111,396 4,310,890
---------------
Accrued expenses and other liabilities 82,271
---------------
Total liabilities 4,393,161
---------------
Net Assets $ 353,634,829
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 35,366,117
Paid-in capital in excess of par 318,295,057
Accumulated realized capital losses--net (Note 4) (26,345)
---------------
Net Assets--Equivalent to $1.00 per share based on 353,661,174 shares of
beneficial interest outstanding $ 353,634,829
===============
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA 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 $ 11,352,855
Expenses:
Investment advisory fees (Note 2) $ 1,689,896
Distribution fees (Note 2) 420,594
Transfer agent fees (Note 2) 101,396
Professional fees 50,204
Accounting services (Note 2) 35,994
Registration fees (Note 1d) 32,473
Custodian fees 28,028
Printing and shareholder reports 27,365
Amortization of organization expenses (Note 1d) 9,806
Pricing fees 9,007
Trustees' fees and expenses 4,521
Other 6,871
---------------
Total expenses 2,416,155
---------------
Investment income--net 8,936,700
Realized Loss on Investments--Net (Note 1c) (12,217)
---------------
Net Increase in Net Assets Resulting from Operations $ 8,924,483
===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA 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 $ 8,936,700 $ 5,863,031
Realized loss on investments--net (12,217) (3,224)
--------------- ---------------
Net increase in net assets resulting from operations 8,924,483 5,859,807
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (8,935,523) (5,863,031)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (8,935,523) (5,863,031)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,238,593,671 1,153,799,544
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 8,935,464 5,863,001
--------------- ---------------
1,247,529,135 1,159,662,545
Cost of shares redeemed (1,230,735,908) (1,141,760,453)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 16,793,227 17,902,092
--------------- ---------------
Net Assets:
Total increase in net assets 16,782,187 17,898,868
Beginning of year 336,852,642 318,953,774
--------------- ---------------
End of year* $ 353,634,829 $ 336,852,642
=============== ===============
<FN>
*Undistributed investment income--net (Note 1f) $ -- $ --
=============== ===============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived August 27,
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 .03 .02 .02 .03 .03
--------- --------- --------- --------- ---------
Total from investment operations .03 .02 .02 .03 .03
--------- --------- --------- --------- ---------
Less dividends from investment income--net (.03) (.02) (.02) (.03) (.03)
--------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Investment Return 2.65% 1.87% 2.29% 3.58% 4.95%*
========= ========= ========= ========= =========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .59% .59% .60% .65% .63%*
========= ========= ========= ========= =========
Expenses, net of reimbursement .71% .72% .72% .77% .75%*
========= ========= ========= ========= =========
Expenses .71% .72% .72% .77% .80%*
========= ========= ========= ========= =========
Investment income--net 2.64% 1.85% 2.22% 3.47% 4.75%*
========= ========= ========= ========= =========
Supplemental Data:
Net assets, end of period (in thousands) $ 353,635 $ 336,853 $ 318,954 $ 243,225 $ 225,622
========= ========= ========= ========= =========
<FN>
*Annualized.
++Commencement of Operations.
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. 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 de-
ducting 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>
(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 $1,177 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.
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.
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.
<PAGE>
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.
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, 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 $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.
<PAGE>
<AUDIT-REPORT>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Pennsylvania 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
Pennsylvania 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 August 27, 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 and brokers. 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 Pennsylvania 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>
<PAGE>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Pennsylvania Municipal Money Fund of CMA Multi-State Municipal
Series Trust during the 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.
