CMA
CMA PENNSYLVANIA
MUNICIPAL MONEY FUND
Semi-Annual Report
September 30, 1998
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. 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. Statements and other information herein are as dated and are
subject to change.
CMA Pennsylvania
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the six-month period ended September 30, 1998, CMA Pennsylvania
Municipal Money Fund paid shareholders a net annualized yield of
2.96%.* As of September 30, 1998, the Fund's 7-day yield was 3.21%.
Economic Environment
During the six-month period ended September 30, 1998, the
commonwealth of Pennsylvania's economy took a modest break from the
rapid growth it experienced in the first quarter of 1998. This is
evident by the commonwealth's August Business Outlook Survey, which
reported some slowing in the commonwealth's manufacturing sector.
For example, while many firms reported growth in new orders and
shipments during the month of August, indicators such as prices of
manufactured goods suggest weakness in demand. Moreover, according
to the survey, expectations for future growth in new orders and
shipments remain muted compared to expectations at the beginning of
the year.
During the six-month period ended September 30, 1998, Governor Ridge
signed into law Pennsylvania's fiscal year 1999 budget, which
totaled $18 billion. The budget sets aside $5 million for the
proposed Keystone Opportunity Zones. These are virtually tax-free
catalysts for growth located in 12 of Pennsylvania's most
economically challenged communities. The budget also contains a
$252.8 million increase in spending for basic higher education,
including a $45.9 million new investment in special education.
[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 commonwealth closed fiscal 1998 with an operating surplus as a
result of conservative budgeting and fiscal practices. Specifically,
the unappropriated fund balance increased by $86.4 million to $488.7
million. In addition, Pennsylvania is transferring $150 million to
its "rainy day" fund in conjunction with the mandated 15% of the
unappropriated surplus to make the total deposit $223 million. In
general, this money will be set aside to prevent future tax
increases in order to protect residents during economic downturns.
During the month of April, the Pennsylvania government passed a tax
cut totalling $221.8 million. The bill eliminated income tax for
thousands of working families of four or more with annual incomes of
less than $25,000, a savings of approximately $700 per family.
Investment Strategy
During the first half of the period, we maintained a relatively
neutral average portfolio maturity for the Fund. Despite
fundamentals for the US economy remaining positive, we believed the
ongoing crisis in Asia would keep monetary policy on hold for the
near term. Because of continued flatness in the short-term tax-
exempt yield curve, we accomplished this neutral stance by
predominantly purchasing tax-exempt commercial paper maturing within
two months--four months while awaiting the expected issuance of
cash-flow notes that traditionally enter the market during the
summer months. The issuance of these fixed-rate notes ordinarily
drives up the yield on securities of this kind, providing the Fund
with a more attractive opportunity to extend maturity. However,
given both the low inflation expectations in our market and the
decrease in issuance caused by thriving state economies, yield
spreads between fixed-rate and variable-rate products remained
relatively narrow. Nevertheless, we took part in the purchase of
these fixed-rate notes because of our need to replace the Fund's
maturing cash flow notes from the previous year, combined with our
belief that these issues could be some of the more attractive yields
we will see on fixed-rate products over the next six months. For the
six-month period ended September 30, 1998, the commonwealth of
Pennsylvania's issuance totalled $1.1 billion, an increase from the
$559.4 million issued during the previous six-month period.
As the September period came to an end, it became evident that the
problems that originated in Pacific Rim countries will significantly
affect the world's financial markets and economies. As a result, US
Treasury yields dropped, while the rate on the 30-year US Treasury
bond closed just below 5% on September 30, 1998. Consequently, we
continued to increase the Fund's percentage of fixed-rate securities
in order to lock in more attractive yields than were expected over
the next six months. The Fund, which began the period with a
weighted average maturity in the 35-day range, concluded the period
in the 50-day range. On September 29, 1998, the Federal Reserve
Board eased monetary policy by lowering the Federal Funds rate 25
basis points (0.25%), and did so again in October with another 25
basis point cut, which investors viewed positively. Finally,
diversification and credit quality remain paramount to the Fund, and
we will continue to monitor the ever-changing marketplace.
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
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. SanFillippo)
Darrin J. SanFillippo
Vice President and Portfolio Manager
November 10, 1998
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
GAN Grant Anticipation Notes
GO General Obligation Bonds
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
S/F Single-Family
TRAN Tax Revenue Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania-- $15,165 Allegheny County, Pennsylvania, Hospital Development Authority Revenue
97.0% Bonds (South Hills Health System), 4.25% due 3/31/1999 $ 15,205
Allegheny County, Pennsylvania, IDA, Revenue Bonds (Unitel Mobile Video
Project), VRDN (a):
1,000 4.05% due 7/01/2009 1,000
3,500 Series B, 4.05% due 7/01/2009 3,500
8,800 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development Parkway Center Mall Project), VRDN, Series A, 4%
due 5/01/2009 (a) 8,800
6,000 Allegheny County, Pennsylvania, Port Authority, GAN, 4.25% due 6/30/1999 6,029
10,300 Beaver County, Pennsylvania, IDA, Environmental Improvement Revenue Bonds
(BASF Corporation Project), VRDN, AMT, 4.25% due 9/01/2032 (a) 10,300
Beaver County, Pennsylvania, IDA, PCR:
5,100 (Duquesne Light Co.), CP, 3.40% due 11/17/1998 5,100
2,000 (Duquesne Light Co.), CP, 3.60% due 12/01/1998 2,000
4,200 (Duquesne Light Co.), CP, 3.65% due 12/11/1998 4,200
2,000 (Duquesne Light Co.), CP, 3.40% due 12/16/1998 2,000
4,000 Refunding (Atlantic Richfield), VRDN, 3.95% due 12/01/2020 (a) 4,000
10,000 Refunding (Toledo Edison), CP, Series E, 3.80% due 12/01/1998 10,000
Berks County, Pennsylvania, IDA, IDR:
4,100 (Citizens Utilities Co. Projects), CP, 3.65% due 10/08/1998 4,100
2,040 (Valley Forge Company, Inc. Project), VRDN, AMT, Series A, 4.20% due
9/01/2006 (a) 2,040
2,515 Bucks County, Pennsylvania, IDA, Revenue Bonds (Dunmore Corp. Project),
VRDN, AMT, 4.15% due 9/01/2012 (a) 2,515
Carbon County, Pennsylvania, IDA, Resource Recovery Revenue Bonds
(Panther Creek Project), CP, AMT:
2,700 Series A, 3.40% due 11/18/1998 2,700
3,000 Series A, 3.55% due 12/10/1998 3,000
6,200 Series A, 3.60% due 12/18/1998 6,200
14,540 Series B, 3.60% due 12/18/1998 14,540
1,000 Central Bucks, Pennsylvania, School District, UT, 4.50% due 5/15/1999 1,004
1,300 Coatesville, Pennsylvania, Area School District, TRAN, 4.05% due 6/30/1999 1,301
1,750 Crawford County, Pennsylvania, IDA, Revenue Bonds (Heatrix Inc. Project),
VRDN, AMT, Series A, 4.15% due 11/01/2017 (a) 1,750
4,690 Cumberland County, Pennsylvania, Municipal Authority College Revenue Bonds
(Dickinson College), Series B, 3.75% due 11/02/1998 4,690
4,640 Dauphin County, Pennsylvania, General Authority Revenue Bonds (School
District Pooled Financing Program II), VRDN, 3.80% due 9/01/2032 (a)(f) 4,640
5,000 Dauphin County, Pennsylvania, IDA, IDR (Interconnection System Project),
VRDN, AMT, 4.20% due 1/01/2014 (a) 5,000
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania $ 2,000 Delaware County, Pennsylvania, Revenue Bonds (Widener University Inc.),
(continued) VRDN, 4.05% due 7/01/2014 (a) $ 2,000
5,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government
Revenue Bonds, VRDN, Series A-74, 4.25% due 8/01/2028 (a) 5,000
1,000 Downingtown, Pennsylvania, Area School District, TRAN, 4.04% due 6/30/1999 1,001
Eagle Tax-Exempt Trust, Pennsylvania, VRDN (a):
9,980 3.70% due 7/01/2025 9,980
5,700 GO, Series 96-C, 4.07% due 5/01/2014 5,700
4,300 Series 94, Class 3803, 4.12% due 5/01/2008 4,300
10,000 Series 953503, 4.09% due 10/01/2020 10,000
6,250 Series A, 3.97% due 7/01/2025 6,250
3,570 East Hempfield Township, Pennsylvania, IDA, Revenue Bonds (Steckel Printing
Inc.), VRDN, AMT, 4.20% due 2/01/2013 (a) 3,570
5,000 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, 4% due
12/01/2028 (a)(d) 5,000
Erie County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (a):
1,900 (McInnes Steel Co.), 4.20% due 11/01/2001 1,900
3,250 (Reed Manufacturing), 4.15% due 6/01/2006 3,250
6,000 Erie County, Pennsylvania, TRAN, 4.375% due 12/31/1998 6,008
6,850 Fayette County, Pennsylvania, IDA, IDR (Dynamic Materials Corporation
Project),VRDN, AMT, 4.05% due 9/01/2013 (a) 6,850
2,950 Jeannette, Pennsylvania, Health Service Authority, Hospital Revenue Bonds
(Jeannette District Memorial Hospital), VRDN, Series B, 4.05% due
11/01/2018 (a) 2,950
6,390 Lackawanna County, Pennsylvania, MSTR, VRDN, UT, Series SGB-38, 4.17% due
9/15/2020 (a)(f) 6,390
Lancaster, Pennsylvania, IDA, Revenue Bonds (Kalas Manufacturing Inc.
Project), VRDN, AMT (a):
2,225 Series A, 4.25% due 10/01/2004 2,225
1,800 Series B, 4.25% due 10/01/2004 1,800
1,600 Lehigh County, Pennsylvania, General Purpose Authority Revenue Bonds
(Lehigh Valley Hospital), VRDN, Series A, 4.10% due 7/01/2028 (a)(f) 1,600
1,100 Montgomery County, Pennsylvania, GO, VRDN, UT, 4% due 11/15/2001 (a) 1,100
2,000 Montgomery County, Pennsylvania, IDA, Revenue Bonds (Merck & Co. Project),
VRDN, Series A, 3.30% due 2/18/1999 (a) 2,000
3,500 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development--Valley Forge Plaza), VRDN, 4% due 12/01/2013 (a) 3,500
1,700 Montgomery County, Pennsylvania, IDA, VRDN, 4.50% due 10/01/2017 (a) 1,700
3,850 Montour County, Pennsylvania, IDA, PCR (Merck & Co. Inc. Project), VRDN,
Series A, 4.25% due 10/01/2003 (a) 3,850
3,500 Moon, Pennsylvania, IDA, Commercial Development Revenue Bonds (One Thorn
Run Center Project), VRDN, Series A, 3.95% due 11/01/2015 (a) 3,500
600 Northampton County, Pennsylvania, Higher Education Authority Revenue Bonds
(Lafayette College), VRDN, UT, Series A, 4.05% due 11/01/2028 (a) 600
Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (a):
8,375 (Citizens Utilities Co.), 3.95% due 9/01/2018 8,375
3,865 (MCS Industries Inc.--Manufacturing Facilities), 4.20% due 6/01/2012 3,865
4,465 Refunding (Reale Association Project), 4.20% due 4/01/2012 4,465
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania Pennsylvania Economic Development Financing Authority, Economic
(continued) Development Revenue Bonds, VRDN(a):
$ 4,800 AMT, Series D-7, 4.20% due 8/01/2022 $ 4,800
1,800 AMT, Series F-5, 4.20% due 12/01/2006 1,800
800 (Erie Forge & Steel Project), AMT, Series B-4, 4.20% due 12/01/1999 800
3,800 (Gutchess Hardwoods Project), Series B, 3.50% due 4/01/2005 3,800
1,010 (Wendt Dunnington Co. Project), AMT, 4.05% due 9/01/2010 1,010
7,500 Pennsylvania Economic Development Financing Authority, Exempt Facilities
Revenue Bonds (National Gypsum Company Project), VRDN, AMT, Series A,
3.95% due 11/01/2027 (a) 7,500
Pennsylvania Energy Development Authority, Energy Development Revenue
Bonds, VRDN, AMT (a):
5,450 (B&W Ebensburg Project), 4.10% due 12/01/2011 5,450
14,000 (Piney Creek Project), Series A, 3.60% due 12/01/2011 14,000
900 (Piney Creek Project), Series C, 3.60% due 12/01/2011 900
9,900 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
Bonds, VRDN, UT, 4.15% due 6/15/2007 (a) 9,900
Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue
Bonds, VRDN, AMT (a):
3,100 Series A, 4.10% due 1/01/2018 3,100
16,000 Series A, 4.15% due 3/01/2027 16,000
1,800 Series C, 4.10% due 7/01/2018 1,800
3,400 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Refunding Bonds (Pennsylvania College of Optometry),
VRDN, 3.95% due 3/01/2026 (a) 3,400
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds:
5,000 CICU Financing Program (Rosemont College), Series B-6, 4.50% due
11/01/1998 5,003
2,500 Council Independent Colleges (Bucknell University), Series A-1, 3.58% due
3/31/1999 2,500
1,600 Council Independent Colleges (Duquesne University), Series A-4, 3.58% due
3/31/1999 1,600
2,225 Refunding (Drexel University), 5% due 5/01/1999 (b) 2,245
1,100 Pennsylvania State Higher Educational Facilities Authority, Revenue
Refunding Bonds (Carnegie Mellon University), VRDN, Series B, 4.15% due
11/01/2027 (a) 1,100
1,150 Pennsylvania State Refunding, UT, Series A, 6.40% due 1/01/1999 1,157
1,000 Pennsylvania State, Series A, 3.30% due 11/24/1998 1,000
Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds:
1,200 Refunding, Series D, 4.75% due 12/01/1998 (c) 1,203
3,520 Senior Series A, 4% due 12/01/1998 (f) 3,523
2,000 Series C, 7.55% due 12/01/1998 (c)(g) 2,052
3,000 Pennsylvania State University, Series A, 4.50% due 3/30/1999 3,014
Philadelphia, Pennsylvania, Authority for IDR (Airport), VRDN (a):
9,050 4.15% due 7/01/2006 9,050
7,000 AMT, Series A-45, 4.40% due 7/01/2028 7,000
2,560 Philadelphia, Pennsylvania, Authority for IDR (David Michael & Co. Inc.), VRDN,
AMT, 4.25% due 10/01/2006 (a) 2,560
400 Philadelphia, Pennsylvania, Authority for IDR (Institute for Cancer Research
Project), VRDN, Series A, 4.15% due 7/01/2013 (a) 400
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 1998 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Pennsylvania $14,000 Philadelphia, Pennsylvania, TRAN, Series A, 4.25% due 6/30/1999 $ 14,062
(concluded) 8,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, VRDN,
Series B, 3.50% due 8/01/2027 (a) 8,000
1,955 Pittsburgh, Pennsylvania, Urban Redevelopment Authority, S/F Mortgage
Revenue Bonds, AMT, Series C, 3.95% due 12/01/1998 (e) 1,955
30,600 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Refunding
Bonds (Northeastern Power Co.), VRDN, AMT, Series B, 4.15% due
12/01/2022 (a) 30,600
3,300 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority Revenue
Refunding Bonds (Mercy Health Systems), VRDN, Series A, 3.90% due
12/01/2021 (a) 3,300
3,500 Temple University of the Commonwealth System of Higher Education,
Pennsylvania, University Funding Obligations, Series B, 4.50% due 5/14/1999 3,516
1,125 Trinity Area School District, Pennsylvania, Refunding, UT, Series A, 4% due
11/01/1998 (c) 1,125
Venango, Pennsylvania, IDA, Resource Recovery Revenue Bonds (Scrubgrass
Project), CP, AMT:
3,000 3.60% due 12/15/1998 3,000
2,000 3.40% due 12/16/1998 2,000
7,300 Refunding, Series A, 3.65% due 11/13/1998 7,300
6,000 Refunding, Series A, 3.60% due 12/15/1998 6,000
4,200 Refunding, Series B, 3.60% due 12/09/1998 4,200
2,500 Westmoreland County, Pennsylvania, IDA, IDR (Newcomer Products), VRDN,
AMT, 4.15% due 12/01/2006 (a) 2,500
2,030 York, Pennsylvania, General Pooled Financing Authority Revenue Bonds, VRDN,
4.05% due 9/01/2026 (a) 2,030
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank, Revenue
1.9% Bonds, CP:
8,000 3.50% due 10/22/1998 8,000
700 Refunding, VRDN, 3.625% due 12/01/2015 (a)(b) 700
Total Investments (Cost--$460,298*)--98.9% 460,298
Other AssetsLess Liabilities--1.1% 5,336
----------
Net Assets--100.0% $ 465,634
==========
<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, 1998.
(b)MBIA Insured.
(c)FGIC Insured.
(d)FSA Insured.
(e)GNMA Collateralized.
(f)AMBAC Insured.
(g)Prerefunded.
*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, 1998
<S> <C> <C>
Assets:
Investments, at value (identified cost--$460,297,876) (Note 1a) $ 460,297,876
Cash 74,402
Receivables:
Interest $ 3,076,223
Securities sold 1,955,635 5,031,858
---------------
Prepaid registration fees and other assets (Note 1d) 616,156
---------------
Total assets 466,020,292
---------------
Liabilities:
Payables:
Investment adviser (Note 2) 193,042
Distributor (Note 2) 109,851 302,893
---------------
Accrued expenses and other liabilities 83,297
---------------
Total liabilities 386,190
---------------
Net Assets $ 465,634,102
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 46,568,464
Paid-in capital in excess of par 419,115,850
Accumulated realized capital losses--net (Note 4) (50,212)
---------------
Net Assets--Equivalent to $1.00 per share based on 465,684,639 shares of
beneficial interest outstanding $ 465,634,102
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 8,267,118
Expenses:
Investment advisory fees (Note 2) $ 1,136,542
Distribution fees (Note 2) 282,903
Transfer agent fees (Note 2) 46,168
Accounting services (Note 2) 31,245
Professional fees 31,003
Registration fees (Note 1d) 21,227
Custodian fees 19,157
Printing and shareholder reports 11,396
Pricing fees 4,398
Trustees' fees and expenses 1,489
Other 2,285
---------------
Total expenses 1,587,813
---------------
Investment income--net 6,679,305
Realized Loss on Investments--Net (Note 1c) (3,814)
---------------
Net Increase in Net Assets Resulting from Operations $ 6,675,491
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Six For the
Months Ended Year Ended
September 30, March 31,
Increase (Decrease) in Net Assets: 1998 1998
<S> <C> <C>
Operations:
Investment income--net $ 6,679,305 $ 12,541,889
Realized loss on investments--net (3,814) (22,010)
--------------- ---------------
Net increase in net assets resulting from operations 6,675,491 12,519,879
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (6,679,305) (12,541,889)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (6,679,305) (12,541,889)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 878,776,024 1,609,592,001
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 6,679,562 12,541,999
--------------- ---------------
885,455,586 1,622,134,000
Cost of shares redeemed (862,829,833) (1,607,995,896)
--------------- ---------------
Net increase in net assets derived from beneficial interest
transactions 22,625,753 14,138,104
--------------- ---------------
Net Assets:
Total increase in net assets 22,621,939 14,116,094
Beginning of period 443,012,163 428,896,069
--------------- ---------------
End of period $ 465,634,102 $ 443,012,163
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios
have been derived from information provided For the Six
in the financial statements. Months Ended
September 30, For the Year Ended March, 31
Increase (Decrease) in Net Asset Value: 1998 1998 1997 1996 1995
<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 .01 .03 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Total from investment operations .01 .03 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.01) (.03) (.03) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.96%* 3.08% 2.92% 3.19% 2.65%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .70%* .70% .71% .72% .71%
========== ========== ========== ========== ==========
Investment income--net 2.94%* 3.03% 2.86% 3.13% 2.64%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $ 465,634 $ 443,012 $ 428,896 $ 416,729 $ 353,635
========== ========== ========== ========== ==========
<FN>
*Annualized.
See Notes to Financial Statements.
</TABLE>
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) 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 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, 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, 1998, the Fund had a net capital loss carryforward of
approximately $46,000, of which $13,000 expires in 2002, $11,000
expires in 2003 and $22,000 expires in 2006. 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
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
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].
