CMA
CMA PENNSYLVANIA
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 Pennsylvania
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 Pennsylvania Municipal Money
Fund paid shareholders a net annualized yield of 2.77%.* As of March
31, 1999, the Fund's 7-day yield was 2.38%.
Economic Environment
During the six-month period ended March 31, 1999, the commonwealth
of Pennsylvania's economy exhibited steady, albeit slower, growth.
Hampered by merger-related job losses, Pennsylvania's expansion
lagged the national pace. Labor force growth also came to a halt,
holding the jobless rate relatively steady. However, despite sub-par
employment and income growth, consumer credit conditions remained
relatively healthy. In addition, Pennsylvania's finances are
currently in good shape with a $500 million surplus expected at
fiscal year-end 1999. The nation's booming stock market also helped
increase taxable income, which generated greater tax revenues.
Consequently, increased tax revenues and conservative fiscal
policies allowed lawmakers to enact $70 million in business tax
reductions and $55 million in personal income tax cuts throughout
1998. The commonwealth's housing market remains one of the most
affordable in the nation. The median existing house price of
$110,400 is 16% less than the national average, while per capita
income is on par with the nation. Moreover, according to the most
current Business Outlook Survey, the region's manufacturing sector
showed signs of improvement at the start of 1999 compared to
readings from recent months. However, despite the improvement in
manufacturing activity, indexes for the change in manufacturing
input and output prices are at historically low levels. As of
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
March 31, 1999, the current price index dropped to a near record
low, falling from -12.5 to -18.0. The current prices paid index also
reached a record low, dropping from -10.1 to -13.2 over the same
period. Additionally, survey participants indicated an improved
outlook for their manufacturing businesses over the first six months
of 1999. The future activity index, which has now risen for three
consecutive months, increased from 19.2 in December 1998 to 27.6 in
January 1999. The commonwealth's 1999--2000 budget contains $273
million in tax cuts, the largest ever proposed by the commonwealth.
Pennsylvania Governor Tom Ridge confirmed that the cuts are aimed at
providing relief to Pennsylvania manufacturers, small businesses
andlow-income and middle-income working families.
Investment Strategy
During the first half of the six-month period ended March 31, 1999,
we maintained a slightly bullish investment strategy for CMA
Pennsylvania Municipal Money Fund. The basis for this strategy was
twofold. First, as the period began, a growing number of economic
statistics, which reflected a somewhat weaker domestic economy,
increased the probability that the Federal Reserve Board would have
to ease monetary policy again. Second, we believed that the expected
lack of short-term tax-exempt issuance during this period would
cause yields on fixed-rate securities to outperform those on
variable-rate demand obligations. Furthermore, as the period
progressed, more evidence that problems in world financial markets
and economies were worsening caused the yield on the one-year US
Treasury bill to trade below 4.0% during early October 1998. Thus,
we continued to increase the Fund's percentage of fixed-rate product
when appropriate in order to lock in more attractive yields.
The Federal Reserve Board eased monetary policy by lowering the
Federal Funds rate from 5.25% to 4.75% with two equal moves of 25
basis points (0.25%) early in the period. However, as 1999 began, it
became apparent that previous interest rate cuts had a favorable
effect on the world's financial markets and that the probability of
a full-blown recession was lessening. Moreover, because of an
increasing amount of domestic economic data depicting a robust
economy and subdued inflation, we expected the Federal Reserve Board
to keep monetary policy on hold for the near term. We also believed
that because of traditional cash inflows during January and
February, yields on one-year fixed-rate issues would provide little
value to extending the portfolio's average maturity significantly.
In view of these factors, we limited our purchases of fixed-rate
securities to tax-exempt commercial paper maturing in three months--
four months that provided comparable yields. We maintained this
slightly bullish posture until the end of the period when we began
to increase the Fund's investments in variable-rate demand
obligations in order to take advantage of the expected spike in
yields on these issues from cash outflows during tax time. The Fund,
which began the period with an average portfolio maturity in the 55-
day range, concluded the period in the 40-day range. For the six-
month period ended March 31, 1999, the commonwealth of
Pennsylvania's issuance totaled $326.2 million, a significant
decrease from the $1.1 billion issued during the previous six-month
period.
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
months and years ahead.
Sincerely,
(Terry K. Glenn)
Terry K. Glenn
President and Director
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. SanFillippo)
Darrin J. SanFillippo
Vice President and Portfolio Manager
May 11, 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 Pennsylvania 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 Pennsylvania Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
FLOATS Floating Rate Securities
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
TAN Tax Anticipation Notes
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Daily Adjustable Tax-Exempt Securities
VRDN Variable Rate Demand Notes
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania-- $11,000 ABN Amro Munitops Certificates Trust, Series 1998-28, 3.17% due 8/04/1999 $ 11,000
100.2% 800 Allegheny County, Pennsylvania, Higher Education Building Authority,
University Revenue Bonds (Carnegie Mellon University), VRDN, 2.85% due
12/01/2033 (f) 800
8,665 Allegheny County, Pennsylvania, Hospital Development Authority Revenue
Bonds (South Hills Health System), VRDN, 3.15% due 3/31/2000 (f) 8,665
Allegheny County, Pennsylvania, IDA, Revenue Bonds (Unitel Mobile Video
Project), VRDN, AMT (f):
1,000 Series A, 3.15% due 7/01/2009 1,000
3,500 Series B, 3.15% due 7/01/2009 3,500
8,800 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development-Parkway Center Project), VRDN, Series A, 3.10% due 5/01/2009 (f) 8,800
6,000 Allegheny County, Pennsylvania, Port Authority Revenue Bonds, GAN, 4.25%
due 6/30/1999 6,010
8,100 Beaver County, Pennsylvania, IDA, Environmental Improvement Recreation
Revenue Bonds (BASF Corporation Project), VRDN, AMT, 3.05% due
9/01/2032 (f) 8,100
3,000 Beaver County, Pennsylvania, IDA, IDR (Standard Steel Specialty), VRDN,
3.25% due 12/03/2007 (f) 3,000
Beaver County, Pennsylvania, IDA, PCR, Refunding:
4,000 (Atlantic Richfield Project), VRDN, 3% due 12/01/2020 (f) 4,000
10,000 (Toledo Edison), CP, Series E, 3.05% due 5/19/1999 10,000
6,263 Bedford County, Pennsylvania, IDA, Revenue Bonds (Defiance Metal Products),
VRDN, 3.25% due 2/01/2011 (f) 6,263
Berks County, Pennsylvania, IDA, IDR:
4,100 (Citizens Utilities Co. Projects), CP, 3% due 4/05/1999 4,100
2,040 (Valley Forge Flag Company, Inc. Project), VRDN, AMT, Series A, 3.20% due
9/01/2006 (f) 2,040
2,345 Bucks County, Pennsylvania, IDA, Revenue Bonds (Dunmore Corp. Project),
VRDN, 3.20% due 9/01/2012 (f) 2,345
6,250 Bucks County, Pennsylvania, TRAN, 2.90% due 12/15/1999 6,250
Carbon County, Pennsylvania, IDA, Resource Recovery Bonds (Panther Creek
Partners), CP, Series A:
14,540 2.95% due 4/01/1999 14,540
4,725 2.80% due 5/14/1999 4,725
2,700 2.80% due 6/15/1999 2,700
9,200 3.15% due 7/22/1999 9,200
1,000 Central Bucks, Pennsylvania, School District, GO, 4.50% due 5/15/1999 1,001
1,300 Coatesville, Pennsylvania, School District, GO, TRAN, 4.05% due 6/30/1999 1,300
1,665 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT,
Series A, 3.25% due 11/01/2017 (f) 1,665
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania Cumberland County, Pennsylvania, Municipal Authority, College Revenue
(continued) Bonds (Dickinson College):
$ 2,000 Series A, 2.95% due 11/01/1999 $ 2,000
4,750 Series B, 2.95% due 11/01/1999 4,750
4,640 Dauphin County, Pennsylvania, General Authority Revenue Bonds (School
District Pooled Financing Program II), VRDN, 3.05% due 9/01/2032 (a)(f) 4,640
5,000 Dauphin County, Pennsylvania, IDA Revenue Bonds (Interconnection System
Project), VRDN, AMT, 3.25% due 1/01/2014 (f) 5,000
2,000 Delaware County, Pennsylvania, Authority Revenue Bonds (Widener
University Inc.), VRDN, 3.15% due 7/01/2014 (f) 2,000
1,000 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES, 2.90%
due 12/01/2009 (f) 1,000
5,000 Delaware Valley, Pennsylvania, Regional Finance Authority, Local Government
Revenue Bonds, FLOATS, VRDN, Series A-74, 3.10% due 8/01/2028 (f) 5,000
1,000 Downingtown, Pennsylvania, Area School District, TRAN, 4.04% due 6/30/1999 1,000
3,310 East Hempfield Township, Pennsylvania, IDA, Revenue Bonds (Steckel
Printing Inc.), VRDN, AMT, 3.20% due 2/01/2013 (f) 3,310
10,000 Eagle Tax Exempt Trust, Beaver County, Pennsylvania, VRDN, Series 95-3503,
3.09% due 10/01/2020 (f) 10,000
Eagle Tax Exempt Trust, Pennsylvania, GO:
4,300 Series 94-3803, 3.15% due 7/22/1999 4,300
5,940 Series 96C-3801, 3.15% due 7/22/1999 5,940
Eagle Tax Exempt Trust, Pennsylvania Housing Finance Agency:
6,250 Series 94C-3801, 3.15% due 7/22/1999 6,250
9,980 Series 97C-3802, 3.10% due 4/06/1999 9,980
5,000 Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN, 3.05% due
12/01/2028 (b)(f) 5,000
3,250 Erie County, Pennsylvania, Industrial Development (Reed Manufacturing Corp.
Project), VRDN, 3.25% due 6/01/2006 (f) 3,250
4,500 Erie County, Pennsylvania, TAN, 3.65% due 12/30/1999 4,518
6,850 Fayette County, Pennsylvania, IDA, IDR (Dynamic Materials Corp. Project),
VRDN, 3.20% due 9/01/2013 (f) 6,850
18,100 Geisinger Authority, Pennsylvania, Health System Revenue Refunding Bonds
(Penn State-Geisinger Health), VRDN, Series B, 2.85% due 8/15/2028 (f) 18,100
4,655 Greene County, Pennsylvania, IDA, Revenue Bonds (Manufacturing
Facilities-Kyowa America), VRDN, AMT, Series D, 3.25% due 7/01/2014 (f) 4,655
13,000 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project),
VRDN, AMT, Series A, 3.10% due 6/01/2027 (f) 13,000
2,900 Jeannette, Pennsylvania, Health Service Authority, Hospital Revenue Bonds
(Jeannette District Memorial Hospital), VRDN, Series B, 3.15% due 11/01/2018 (f) 2,900
6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 3.16% due
9/15/2020 (f) 6,390
Lancaster, Pennsylvania, IDA, Revenue Bonds (Kalas Manufacturing Inc.
Project), VRDN, AMT (f):
1,945 Series A, 3.30% due 10/01/2004 1,945
1,565 Series B, 3.30% due 10/01/2004 1,565
1,600 Lehigh County, Pennsylvania, General Purpose Authority Revenue Bonds
(Lehigh Valley Hospital), VRDN, Series A, 2.80% due 7/01/2028 (a)(f) 1,600
4,000 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel
Enterprises Project), VRDN, AMT, Series A, 3.25% due 9/01/2013 (f) 4,000
765 Montgomery County, Pennsylvania, GO, VRDN, 3.05% due 11/15/2001 (f) 765
1,700 Montgomery County, Pennsylvania, IDA, Revenue Bonds, Pollution Control
(Merck & Co. Inc. Project), FLOATS, VRDN, 3.50% due 10/01/2017 (f) 1,700
3,500 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds
(Commercial Development - Valley Forge Plaza), VRDN, 3.05% due 12/01/2013 (f) 3,500
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania $ 3,850 Montour County, Pennsylvania, IDA, PCR (Merck & Co. Inc. Project), FLOATS,
(continued) VRDN, Series A, 3.25% due 10/01/2003 (f) $ 3,850
3,365 Moon, Pennsylvania, IDA, Commercial Development (One Thorn Run Center
Project), VRDN, Series A, 3.05% due 11/01/2015 (f) 3,365
Northampton County, Pennsylvania, Higher Education Authority Revenue
Bonds:
2,615 (College Funding-Lafayette), 1st Series, 3.75% due 11/30/1999 2,627
5,500 (Lafayette College), VRDN, Series A, 3.15% due 11/01/2028 (f) 5,500
Northampton County, Pennsylvania, IDA Revenue Bonds, VRDN, AMT (f):
8,375 (Citizens Utilities Co.), 3.10% due 9/01/2018 8,375
3,865 (Manufacturing Facilities - MCS Industries Inc.), 3.20% due 6/01/2012 3,865
4,465 (Reale Association Project), 3.20% due 4/01/2012 4,465
3,800 Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds (Gutchess Hardwoods Inc. Project), VRDN,
Series B, 3.20% due 4/01/2005 (f) 3,800
Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds, VRDN (f):
4,800 AMT, Series D-7, 3.25% due 8/01/2022 4,800
1,600 AMT, Series F-5, 3.25% due 12/01/2006 1,600
400 Series B-4, 3.25% due 12/01/1999 400
1,010 (Wendt Dunning Co. Project), AMT, 3.10% due 9/01/2010 1,010
Pennsylvania Economic Development Financing Authority, Exempt Facilities
Revenue Bonds, AMT:
4,670 (Approved Solid Waste Projects), 3.25% due 12/15/1999 4,670
7,500 (National Gypsum Co. Project), VRDN, Series A, 3.15% due 11/01/2027 (f) 7,500
Pennsylvania Energy Development Authority Revenue Bonds, VRDN, AMT (f):
5,150 (B&W Ebensburg Project), 3.15% due 12/01/2011 5,150
14,000 (Piney Creek), Series A, 3.15% due 12/01/2011 14,000
900 (Piney Creek), Series C, 3.15% due 12/01/2011 900
9,900 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
Bonds, Tender Option Certificates, VRDN, Series BTP-288, 3.20% due
6/15/2003 (d)(f) 9,900
Pennsylvania State Higher Education Assistance Agency, Student Loan
Revenue Bonds, VRDN, AMT (f):
3,100 Series A, 3.10% due 1/01/2018 3,100
16,000 Series A, 3.15% due 3/01/2027 16,000
1,800 Series C, 3.10% due 7/01/2018 1,800
3,400 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Pennsylvania College of Optometry), VRDN, 3%
due 3/01/2026 (f) 3,400
2,225 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Refunding Bonds (Drexel University), 5% due 5/01/1999 (c) 2,228
5,000 Pennsylvania State Higher Educational Facilities Authority Revenue Bonds
(Association of Independent Colleges and Universities), Series C-4, 4%
due 11/01/1999 5,027
Pennsylvania State Higher Educational Facilities Authority, Revenue Refunding
Bonds (Carnegie Mellon University), VRDN (f):
7,500 Series A, 2.85% due 11/01/2025 7,500
5,300 Series B, 2.85% due 11/01/2027 5,300
1,300 Series C, 2.85% due 11/01/2029 1,300
3,810 Pennsylvania State Turnpike Commission, Oil Franchise Tax Revenue Bonds,
Sub-Series B, 4% due 12/01/1999 (a) 3,834
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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>
Pennsylvania $ 9,050 Philadelphia, Pennsylvania, Authority for Industrial Development, Airport
(concluded) Revenue Bonds, Tender Option Certificates, VRDN, Series BTP-316, 3.25% due
7/01/2006 (f) $ 9,050
12,200 Philadelphia, Pennsylvania, Authority for IDR (Fox Chase Cancer Center
Project), VRDN, 3.10% due 7/01/2025 (f) 12,200
6,700 Philadelphia, Pennsylvania, Authority for IDR, Refunding (Institute for Cancer
Research), VRDN, Series A, 2.85% due 7/01/2013 (f) 6,700
2,560 Philadelphia, Pennsylvania, Authority for Industrial Development, IDR
(David Michael & Co. Inc.), VRDN, AMT, 3.25% due 10/01/2006 (f) 2,560
14,000 Philadelphia, Pennsylvania, GO, TRAN, Series A, 4.25% due 6/30/1999 14,021
Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Hospital Revenue Bonds, VRDN (f):
1,500 (Children's Hospital of Philadelphia Project), 3.05% due 3/01/2027 1,500
13,500 (Children's Hospital Project), Series A, 3.05% due 3/01/2027 13,500
1,520 Pittsburgh, Pennsylvania, Urban Redevelopment Authority, Mortgage Revenue
Refunding Bonds, AMT, Series C, 3.20% due 12/01/1999 1,520
5,935 Pittsburgh, Pennsylvania, Water and Sewer Authority, Water and Sewer System,
Tender Option Certifcates, CP, Series BTP-181, 3% due 9/15/2001 (d) 5,935
Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Refunding
Bonds (Northeastern Power Company), VRDN (f):
31,800 AMT, Series B, 3.10% due 12/01/2022 31,800
2,100 Series A, 3% due 12/01/2022 2,100
3,200 Scranton-Lackawanna, Pennsylvania, Health and Welfare Authority, Revenue
Refunding Bonds, Hospital Facilities (Mercy Health), VRDN, Series A, 3% due
12/01/2021 (f) 3,200
3,500 Temple University of the Commonwealth, System of Higher Education of
Pennsylvania, University Funding Obligation, Series B, 4.50% due 5/14/1999 3,503
5,000 Venango, Pennsylvania, IDA, Revenue Bonds (Scrubgrass Project), AMT, CP,
2.85% due 5/17/1999 5,000
Venango, Pennsylvania, IDA, Revenue Refunding Bonds (Scrubgrass Project),
AMT, CP:
7,300 Series A, 2.80% due 5/14/1999 7,300
4,200 Series B, 3.10% due 7/22/1999 4,200
2,500 Westmoreland County, Pennsylvania, IDA, Revenue Bonds (Newcomer
Products), VRDN, AMT, 3.25% due 12/01/2006 (f) 2,500
2,030 York, Pennsylvania, General Authority, Pooled Financing Revenue Bonds,
VRDN, 3.10% due 9/01/2026 (f) 2,030
Puerto Rico-- 4,338 Puerto Rico Commonwealth, Government Development Bank, Interest
0.8% Adjustments, 2.70% due 5/14/1999 4,338
Total Investments (Cost--$534,135*)--101.0% 534,135
Liabilities in Excess of Other Assets--(1.0%) (5,295)
----------
Net Assets--100.0% $ 528,840
==========
<FN>
(a)AMBAC Insured.
(b)FSA Insured.
(c)MBIA Insured.
(d)Prerefunded.
(e)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at March 31, 1999.
(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.
*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 MARCH 31, 1999
<S> <C> <C>
Assets:
Investments, at value (identified cost--$534,134,811) (Note 1a) $ 534,134,811
Cash 24,233
Receivables:
Interest $ 3,516,215
Securities sold 16,021 3,532,236
---------------
Prepaid registration fees and other assets (Note 1d) 312,777
---------------
Total assets 538,004,057
---------------
Liabilities:
Payables:
Securities purchased 8,665,000
Investment adviser (Note 2) 233,160
Distributor (Note 2) 155,407 9,053,567
---------------
Accrued expenses and other liabilities 110,110
---------------
Total liabilities 9,163,677
---------------
Net Assets $ 528,840,380
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 52,889,503
Paid-in capital in excess of par 476,005,201
Accumulated realized capital losses--net (Note 4) (54,324)
---------------
Net Assets--Equivalent to $1.00 per share based on 528,895,029 shares of
beneficial interest outstanding $ 528,840,380
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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 $ 16,577,509
Expenses:
Investment advisory fees (Note 2) $ 2,420,993
Distribution fees (Note 2) 604,797
Transfer agent fees (Note 2) 97,473
Accounting services (Note 2) 68,305
Registration fees (Note 1d) 65,422
Professional fees 59,025
Custodian fees 40,687
Printing and shareholder reports 23,385
Pricing fees 10,136
Trustees' fees and expenses 3,061
Other 5,068
---------------
Total expenses 3,398,352
---------------
Investment income--net 13,179,157
Realized Loss on Investments--Net (Note 1c) (7,926)
---------------
Net Increase in Net Assets Resulting from Operations $ 13,171,231
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA PENNSYLVANIA 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 $ 13,179,157 $ 12,541,889
Realized loss on investments--net (7,926) (22,010)
--------------- ---------------
Net increase in net assets resulting from operations 13,171,231 12,519,879
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (13,179,157) (12,541,889)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (13,179,157) (12,541,889)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,748,380,956 1,609,592,001
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) 13,179,254 12,541,999
--------------- ---------------
1,761,560,210 1,622,134,000
Cost of shares redeemed (1,675,724,067) (1,607,995,896)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 85,836,143 14,138,104
--------------- ---------------
Net Assets:
Total increase in net assets 85,828,217 14,116,094
Beginning of year 443,012,163 428,896,069
--------------- ---------------
End of year $ 528,840,380 $ 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 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 .03
Realized loss on investments--net --++ --++ --++ --++ --++
---------- ---------- ---------- ---------- ----------
Total from investment operations .03 .03 .03 .03 .03
---------- ---------- ---------- ---------- ----------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.03)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Investment Return 2.77% 3.08% 2.92% 3.19% 2.65%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .70% .70% .71% .72% .71%
========== ========== ========== ========== ==========
Investment income--net 2.71% 3.03% 2.86% 3.13% 2.64%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $ 528,840 $ 443,012 $ 428,896 $ 416,729 $ 353,635
========== ========== ========== ========== ==========
<FN>
++Amount is less than $.01 per share.
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. 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.
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.
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
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 $50,000, of which $13,000 expires in 2002, $11,000
expires in 2003, $22,000 expires in 2006 and $4,000 expires in 2007.
This amount will be available to offset like amounts of any future
taxable gains.
<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 Penn-
sylvania 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 Pennsylvania 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 14, 1999
</AUDIT-REPORT>
CMA PENNSYLVANIA MUNICIPAL MONEY FUND
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 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 PENNSYLVANIA 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
Gerald M. Richard, Treasurer of CMA Pennsylvania 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.
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].
