CMA Pennsylvania
Municipal Money Fund
Annual Report
March 31, 2000
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, 2000, CMA Pennsylvania Municipal Money
Fund paid shareholders a net annualized yield of 2.81%.* As of March
31, 2000, the Fund's 7-day yield was 3.13%.
Economic Environment
Pennsylvania's economy, which expanded modestly during 1999, began
to moderate somewhat as the year ended. By March 31, 2000, growth in
Pennsylvania was driven by the service industry, as the pace of
expansion in most sectors cooled down. For example, a balance of
data in the region's December Business Outlook Survey suggests
continued growth in the manufacturing sector, but some slowing in
growth of orders and shipments. Moreover, among manufacturers
surveyed, a majority reported increases in manufacturing employment
but also noted that the pace of employment growth was now slowing.
In fact, manufacturing employment stabilized at approximately 17% of
the commonwealth's workforce, while the service sector continued to
increase and accounted for 32% of employment and approximately 30%
of personal income. Total personal income for Pennsylvania grew more
slowly than that of the nation, but on a per capita basis
performance was average, ranking sixteenth among the states using
this measure. Pennsylvania's household income is expected to keep up
with the national average in the long term. The survey also
reflected that although input price pressures were still evident,
there was still no upward price pressure on final manufactured
goods. The current prices paid index declined slightly from 24.8 in
November to 24.4 in December, while the current prices received
index fell from 11.6 to 2.2, respectively.
On January 14, 2000, the commonwealth of Pennsylvania issued $192
million in general obligation bonds. The bonds, which are rated Aa3
by Moody's Investors Service, Inc., were issued to fund various
capital facilities and state projects. Including this newest issue,
net tax-supported debt was equal to about $7.5 billion or a moderate
$621 per capita. Almost 80% of the commonwealth's debt is general
obligation, with the remainder secured by leases and special taxes.
Tax anticipation borrowing was not utilized last year and while the
1999-2000 budget included borrowing of $560 million, none is
expected this year.
Conversely, weak demographic trends continued to be a constraining
factor for Pennsylvania's economy. The commonwealth's population
declined by more than 8,000 people last year, the fourth straight
year of decline. However, the commonwealth's industrial-diverse
economy is a long-term advantage as it provides many avenues for
future growth. Finally, electric utility deregulation and ongoing
efforts to reduce business taxes may decrease Pennsylvania's
business cost, making the state more competitive overall.
Investment Strategy
During the year ended March 31, 2000, the persistent strength of the
US economy continued to fuel an already volatile interest rate
environment. We began the period building on our relatively bearish
position by continuing to reinvest the proceeds of maturing tax-
exempt commercial paper into variable rate products. We did this in
an effort to take advantage of the higher yields that were expected
in April and May 1999 as a result of cash outflows during tax time.
As May 1999 ended, a string of economic data pointing to the
presence of inflationary pressures raised concerns about higher
interest rates. These factors, along with comments made by Federal
Reserve Board Chairman Alan Greenspan, caused yields on US Treasury
securities to rise significantly as expectations of tighter monetary
policy increased. For example, the yield on the one-year Treasury
note, which began the period at 4.70%, rose to 5.20% by late June,
an increase of 50 basis points (0.50%).
On June 30, 1999, the Federal Reserve Board tightened monetary
policy by raising the Federal Funds rate from 4.75% to 5.00%. Given
our bearish position, as well as a meager June inflation report and
the need to replace maturing notes, we purchased some one-year
issues. However, with the bulk of the tax-exempt fixed rate supply
expected during the late summer and concerns about inflation by the
Federal Reserve Board once again in July, we maintained this bearish
position for the Fund. On August 24, 1999, the Federal Reserve Board
tightened monetary policy again by increasing the Federal Funds rate
25 basis points to 5.25%. At that time, we chose to attain a
slightly bullish strategy. The basis for this strategy was twofold.
First, comments made by the Federal Reserve Board after the second
interest rate increase were not as negative as those made following
the previous tightening. Second, the expectation of tighter monetary
policy, combined with traditional issuance of cash flows notes in
August and September caused yields on fixed rate issues to become
more attractive, thus providing a valuable opportunity to take a
more aggressive stance.
The second half of the fiscal year ended March 31, 2000 began with
economic data that continued to point to a US economy that was
overheating. Consequently, on November 16, 1999, the Federal Reserve
Board tightened monetary policy a third time, increasing the Federal
Funds rate to 5.50%. Although we expected the Federal Reserve Board
would keep monetary policy on hold through year-end because of Year
2000 concerns, we anticipated additional tightening of monetary
policy early in 2000. Thus, during this time we managed the Fund's
interest rate risk by purchasing fixed rate issues that matured
within 90 days--120 days in order to lock in higher yields than were
expected in January and February 2000. As anticipated, the Federal
Reserve Board tightened monetary policy by increasing the Federal
Funds rate 25 basis points at both the February and March 2000
Federal Open Market Committee meetings.
Looking ahead, we continue to believe that the Federal Reserve Board
may have to tighten monetary policy at least once more to slow the
domestic economy. In addition, variable rate products traditionally
outperform fixed rate products in April and May because of cash
outflows during tax time. Given these factors, we ended the period
with a slightly defensive position. This strategy allowed the Fund
to perform above the average of its peer group for the year ended
March 31, 2000, as measured by IBC Money Fund Report.
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 Trustee
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Darrin J. SanFillippo)
Darrin J. SanFillippo
Vice President and Portfolio Manager
April 26, 2000
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
Portfolio Abbreviations for CMA Pennsylvania Municipal Money Fund
ACES SM Adjustable Convertible Extendible Securities
AMT Alternative Minimum Tax (subject to)
COP Certificate of Participation
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TRAN Tax Revenue Anticipation Notes
UPDATES Unit Price Demand Adjustable Tax-Exempt
Securities
VRDN Variable Rate Demand Notes
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of March 31, 2000 (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania-- ABN Amro Munitops Certificates Trust:
99.3% $15,879 Series 1999-16, 3.85% due 5/31/2000 $ 15,879
11,000 VRDN, Series 1998-28, 3.99% due 4/05/2006 (d) 11,000
4,300 Allegheny County, Pennsylvania, Hospital Development Authority Revenue
Bonds (South Hills Health System), VRDN, 4.30% due 4/01/2008 (d) 4,300
Allegheny County, Pennsylvania, Hospital Development Authority Revenue
Bonds (Presbyterian University Hospital), ACES (d):
4,020 Series B-1, 4% due 3/01/2018 4,020
985 Series B-2, 4% due 3/01/2018 985
4,380 Series B-3, 4% due 3/01/2018 4,380
10,000 Allegheny County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development--Parkway Center Project), VRDN, Series A, 3.95% due
5/01/2009 (d) 10,000
10,400 Beaver County, Pennsylvania, IDA, Environmental Improvement Recreation
Revenue Bonds (BASF Corporation Project), VRDN, AMT, 4% due 9/01/2032 (d) 10,400
2,755 Beaver County, Pennsylvania, IDA, IDR (Standard Steel Specialty), VRDN, 4.10%
due 12/03/2007 (d) 2,755
Beaver County, Pennsylvania, IDA, PCR, Refunding:
4,000 (Atlantic Richfield Project), VRDN, 3.85% due 12/01/2020 (d) 4,000
18,000 (Duquesne Light Company), CP, Series E, 3.95% due 7/06/2000 (a) 18,000
6,155 Bedford County, Pennsylvania, IDA, Revenue Bonds (Defiance Metal Products),
VRDN, 4.10% due 2/01/2011 (d) 6,155
1,830 Berks County, Pennsylvania, IDA, IDR (Valley Forge Flag Company, Inc.
Project), VRDN, AMT, Series A, 4.05% due 9/01/2006 (d) 1,830
1,400 Boyertown, Pennsylvania, Area School District, TRAN, 3.75% due 6/30/2000 1,400
2,005 Bucks County, Pennsylvania, IDA, Revenue Bonds (Dunmore Corp. Project),
VRDN, 4.10% due 9/01/2012 (d) 2,005
1,550 Central Dauphin, Pennsylvania, School District, GO, Refunding, Series A,
5% due 6/01/2000 (b) 1,555
24,995 Clipper Tax Exempt, COP, VRDN, AMT, Series 1999-6, 3.96% due 5/14/2002 (d) 24,995
3,000 Coatsville, Pennsylvania School District, TRAN, 4% due 6/30/2000 3,003
1,580 Crawford County, Pennsylvania, IDA (Heatrix Inc. Project), VRDN, AMT,
Series A, 4.10% due 11/01/2017 (d) 1,580
2,260 Dauphin County, Pennsylvania, General Authority Revenue Bonds, Series 1,
3.88% due 6/01/2000 (a) 2,260
4,640 Dauphin County, Pennsylvania, General Authority, Revenue Refunding Bonds
(School District Pooled Financing Program II), VRDN, 3.88% due
9/01/2032 (a)(d) 4,640
4,590 Dauphin County, Pennsylvania, IDA, Revenue Bonds (Interconnection System
Project), VRDN, AMT, 4.10% due 1/01/2014 (d) 4,590
2,000 Delaware County, Pennsylvania, Authority Revenue Bonds (Widener University
Inc.), VRDN, 4% due 7/01/2014 (d) 2,000
6,000 Delaware County, Pennsylvania, IDA, PCR (BP Oil Inc. Project), UPDATES, VRDN,
3.90% due 12/01/2009 (d) 6,000
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania $10,000 Eagle Tax-Exempt Trust, Beaver County, Pennsylvania, VRDN, Series 95-3503,
(continued) 3.96% due 10/01/2020 (d) $ 10,000
Eagle Tax-Exempt Trust, Pennsylvania GO:
4,300 Series 94-3803, 3.95% due 5/11/2000 4,300
5,940 Series 96C-3801, 3.95% due 5/11/2000 5,940
6,080 Eagle Tax-Exempt Trust, Pennsylvania, HFA, Series 94C-3801, 3.95% due
5/11/2000 6,080
3,040 East Hempfield Township, Pennsylvania, IDA, Revenue Bonds (Steckel Printing
Inc.), VRDN, AMT, 4.05% due 2/01/2013 (d) 3,040
Emmaus, Pennsylvania, General Authority Revenue Bonds, VRDN (d):
9,265 3.90% due 12/01/2028 (c) 9,265
10,000 Series D, 3.90% due 3/01/2024 10,000
3,250 Erie County, Pennsylvania, IDR, Refunding (Reed Manufacturing Corp.
Project), VRDN, 4.10% due 6/01/2006 (d) 3,250
6,600 Erie, Pennsylvania, School District, TRAN, 3.95% due 6/30/2000 6,600
6,520 Fayette County, Pennsylvania, IDA, IDR (Dynamic Materials Corp. Project),
VRDN, 4.15% due 9/01/2013 (d) 6,520
4,655 Greene County, Pennsylvania, IDA Revenue Bonds (Manufacturing Facilities-
Kyowa America), VRDN, AMT, Series D, 4.10% due 7/01/2014 (d) 4,655
5,625 Grove City, Pennsylvania, Area Hospital Authority, Health Care Facility
Revenue Bonds (John XXIII Home Project), VRDN, 3.90% due 2/01/2030 (d) 5,625
20,500 Indiana County, Pennsylvania, IDA, PCR, Refunding (Conemaugh Project),
VRDN, AMT, Series A, 3.95% due 6/01/2027 (d) 20,500
6,500 Iroquois, Pennsylvania, School District, GO, 4.50% due 6/01/2000 6,508
2,845 Jeannette, Pennsylvania, Health Service Authority, Hospital Revenue Bonds
(Jeannette District Memorial Hospital), VRDN, Series B, 4% due 11/01/2018 (d) 2,845
6,390 Lackawanna County, Pennsylvania, GO, MSTR, VRDN, Series SGB-38, 3.96% due
9/15/2020 (d) 6,390
3,500 Lancaster County, Pennsylvania, GO, VRDN, 3.94% due 5/01/2030 (b)(d) 3,500
1,330 Lancaster, Pennsylvania, IDA, Revenue Bonds (Kalas Manufacturing Inc.
Project), VRDN, AMT, Series B, 4.15% due 10/01/2004 (d) 1,330
5,600 Lebanon County, Pennsylvania, Health Facilities Authority, Health Center
Revenue Refunding Bonds (United Church Of Christ Project), VRDN, 3.96% due
4/01/2024 (d) 5,600
1,275 Lehigh County, Pennsylvania, General Purpose Authority, Revenue Refunding
Bonds (Muhlenberg College), 5% due 8/01/2000 (a) 1,280
4,000 Monroe County, Pennsylvania, IDA, Revenue Refunding Bonds (UTD Steel
Enterprises Project), VRDN, AMT, Series A, 4.10% due 9/01/2013 (d) 4,000
385 Montgomery County, Pennsylvania, GO, VRDN, 3.90% due 11/15/2001 (d) 385
3,500 Montgomery County, Pennsylvania, IDA, Revenue Refunding Bonds (Commercial
Development--Valley Forge Plaza), VRDN, 3.90% due 12/01/2013 (d) 3,500
3,285 Moon, Pennsylvania, IDA, Commercial Development (One Thorn Run Center
Project), VRDN, Series A, 3.95% due 11/01/2015 (d) 3,285
13,200 Northampton County, Pennsylvania, Higher Education Authority Revenue
Bonds (Lafayette College), VRDN, Series A, 4% due 11/01/2028 (d) 13,200
Northampton County, Pennsylvania, IDA, Revenue Bonds, VRDN, AMT (d):
3,570 (Manufacturing Facilities--MCS Industries Inc.), 4.05% due 6/01/2012 3,570
4,150 (Reale Association Project), 4.05% due 4/01/2012 4,150
Pennsylvania Economic Development Financing Authority, Economic
Development Revenue Bonds, VRDN (d):
4,600 AMT, Series D-7, 4.10% due 8/01/2022 4,600
1,400 AMT, Series F-5, 4.10% due 12/01/2006 1,400
3,100 (Gutchess Hardwoods Inc. Project), Series B, 4% due 4/01/2005 3,100
925 (Wendt Dunning Co. Project), AMT, 4.15% due 9/01/2010 925
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of March 31, 2000 (continued) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania Pennsylvania Energy Development Authority Revenue Bonds, VRDN, AMT (d):
(continued) $ 4,795 (B&W Ebensburg Project), 3.90% due 12/01/2011 $ 4,795
14,000 (Piney Creek), Series A, 3.90% due 12/01/2011 14,000
900 (Piney Creek), Series C, 3.90% due 12/01/2011 900
3,500 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
Refunding Bonds (Philadelphia Funding Program), 4.50% due 6/15/2000 (b) 3,509
2,500 Pennsylvania State, GO, First Series, 5% due 5/01/2000 2,504
Pennsylvania State Higher Education Assistance Agency, Student Loan Revenue
Bonds, VRDN, AMT (d):
3,100 Series A, 4% due 1/01/2018 3,100
16,000 Series A, 4% due 3/01/2027 16,000
25,800 Series C, 4% due 7/01/2018 25,800
3,200 Pennsylvania State Higher Educational Facilities Authority, College and
University Revenue Bonds (Pennsylvania College of Optometry), VRDN, 3.90%
due 3/01/2026 (d) 3,200
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds:
2,700 (Association of Independent Colleges and Universities--MercyHurst
College), Series E-1, 4.50% due 11/01/2000 2,711
7,000 (Association of Independent Colleges and Universities), Series D-5,
3.75% due 5/01/2000 7,003
1,600 (Laffayette College Notes), 4.50% due 11/29/2000 1,606
2,540 Philadelphia, Pennsylvania, Authority for Industrial Development, IDR
(David Michael & Co. Inc.), VRDN, AMT, 4.15% due 10/01/2006 (d) 2,540
15,000 Philadelphia, Pennsylvania, GO, TRAN, Series A, 4.25% due 6/30/2000 15,027
5,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, CP, Series C, 3.85%
due 5/12/2000 5,000
6,500 Philadelphia, Pennsylvania, Hospitals and Higher Education Facilities
Authority, Hospital Revenue Bonds (Children's Hospital of Philadelphia
Project), VRDN, 3.85% due 3/01/2027 (d) 6,500
Philadelphia, Pennsylvania, School District, GO, TRAN:
4,000 Series B, 4% due 6/30/2000 4,005
15,000 Series C, 4% due 6/30/2000 15,000
2,000 Pittsburgh, Pennsylvania, Urban Redevelopment Authority, Mortgage Revenue
Refunding Bonds, AMT, Series E, 3.65% due 8/15/2000 2,000
32,300 Schuylkill County, Pennsylvania, IDA, Resource Recovery Revenue Refunding
Bonds (Northeastern Power Company), VRDN, AMT, Series B, 3.95% due
12/01/2022 (d) 32,300
3,700 Somerset County, Pennsylvania, Hospital Authority Revenue Bonds (Somerset
Community Hospital Project), Series A, 4.30% due 3/01/2001 3,700
3,000 Somerset County, Pennsylvania, IDA, Revenue Bonds (Welding & Steel Project),
VRDN, AMT, 3.95% due 3/01/2015 (d) 3,000
Venango, Pennsylvania, IDA, Revenue Bonds (Scrubgrass Generating Company
Project), CP, AMT:
4,100 4% due 7/13/2000 4,100
7,215 4.05% due 7/21/2000 7,215
Venango, Pennsylvania, IDA, Revenue Refunding Bonds (Scrubgrass Generating
Company Project), CP, AMT:
2,500 Series A, 3.95% due 5/18/2000 2,500
9,000 Series A, 4.05% due 7/14/2000 9,000
5,000 Series A, 3.95% due 7/20/2000 5,000
4,650 Series B, 3.90% due 5/18/2000 4,650
5,400 Series B, 3.90% due 7/14/2000 5,400
4,200 Series B, 3.95% due 7/20/2000 4,200
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Schedule of Investments as of March 31, 2000 (concluded) (in Thousands)
<CAPTION>
Face
State Amount Issue Value
<S> <C> <S> <C>
Pennsylvania $ 2,500 Westmoreland County, Pennsylvania, IDA, Revenue Bonds (Newcomer
(concluded) Products), VRDN, AMT, 4.10% due 12/01/2006 (d) $ 2,500
1,650 York County, Pennsylvania, IDA, Economic Development Revenue Bonds
(Fypon Limited Project), VRDN, AMT, 4.10% due 4/01/2015 (d) 1,650
2,000 York, Pennsylvania, General Authority, Pooled Financing Revenue Bonds,
VRDN, 3.95% due 9/01/2026 (d) 2,000
Puerto Rico-- 3,242 Puerto Rico Commonwealth, Government Development Bonds, CP, 3.50%
0.6% due 4/05/2000 3,242
Total Investments (Cost--$538,732*)--99.9% 538,732
Other Assets Less Liabilities--0.1% 445
----------
Net Assets--100.0% $ 539,177
==========
(a)AMBAC Insured.
(b)FGIC Insured.
(c)FSA Insured.
(d)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, 2000.
*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, 2000
<S> <S> <S>
Assets:
Investments, at value (identified cost--$538,732,193) $ 538,732,193
Cash 388,335
Receivables:
Interest $ 3,619,635
Securities sold 215,045 3,834,680
---------------
Prepaid registration fees and other assets 1,019,785
---------------
Total assets 543,974,993
---------------
Liabilities:
Payables:
Securities purchased 4,301,027
Investment adviser 208,370
Distributor 174,843 4,684,240
---------------
Accrued expenses and other liabilities 114,011
---------------
Total liabilities 4,798,251
---------------
Net Assets $ 539,176,742
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 53,924,827
Paid-in capital in excess of par 485,323,123
Accumulated realized capital losses--net (71,208)
---------------
Net Assets--Equivalent to $1.00 per share based on 539,248,275 shares of
beneficial interest outstanding $ 539,176,742
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA Pennsylvania Municipal Money Fund
Statement of Operations for the Year Ended March 31, 2000
<S> <S> <S>
Investment Income:
Interest and amortization of premium and discount earned $ 18,138,887
Expenses:
Investment advisory fees $ 2,599,328
Distribution fees 649,944
Transfer agent fees 89,865
Accounting services 82,671
Professional fees 60,230
Custodian fees 40,822
Registration fees 27,798
Printing and shareholder reports 25,440
Pricing fees 11,161
Trustees' fees and expenses 3,190
Other 5,724
---------------
Total expenses 3,596,173
---------------
Investment income--net 14,542,714
Realized Loss on Investments--Net (16,884)
---------------
Net Increase in Net Assets Resulting from Operations $ 14,525,830
===============
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,
2000 1999
<S> <S> <S>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net $ 14,542,714 $ 13,179,157
Realized loss on investments--net (16,884) (7,926)
-------------- --------------
Net increase in net assets resulting from operations 14,525,830 13,171,231
-------------- --------------
Dividends to Shareholders:
Investment income--net (14,542,714) (13,179,157)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (14,542,714) (13,179,157)
-------------- --------------
Beneficial Interest Transactions:
Net proceeds from sale of shares 2,275,723,704 1,748,380,956
Net asset value of shares issued to shareholders in reinvestment of
dividends 14,542,700 13,179,254
-------------- --------------
2,290,266,404 1,761,560,210
Cost of shares redeemed (2,279,913,158) (1,675,724,067)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 10,353,246 85,836,143
-------------- --------------
Net Assets:
Total increase in net assets 10,336,362 85,828,217
Beginning of year 528,840,380 443,012,163
-------------- --------------
End of year $ 539,176,742 $ 528,840,380
============== ==============
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: 2000 1999 1998 1997 1996
Per Share Operating Performance:
<S> <C> <C> <C> <C> <C>
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 2.81% 2.77% 3.08% 2.92% 3.19%
========== ========== ========== ========== ==========
Ratios to Average Net Assets:
Expenses .69% .70% .70% .71% .72%
========== ========== ========== ========== ==========
Investment income--net 2.78% 2.71% 3.03% 2.86% 3.13%
========== ========== ========== ========== ==========
Supplemental Data:
Net assets, end of year (in thousands) $ 539,177 $ 528,840 $ 443,012 $ 428,896 $ 416,729
========== ========== ========== ========== ==========
++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 accounting
principles generally accepted in the United States of America, 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: .50%
of the first $500 million of average daily net assets; .425% of
average daily net assets in excess of $500 million but not exceeding
$1 billion; and .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 .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 sold, reinvested and redeemed during the
periods corresponds to the amounts included in the Statements of
Changes in Net Assets for net proceeds from sale of shares, value of
shares reinvested and cost of shares, redeemed, respectively, since
shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 2000, the Fund had a net capital loss carryforward of
approximately $71,000, of which $13,000 expires in 2002, $11,000
expires in 2003, $22,000 expires in 2006, $4,000 expires in 2007 and
$21,000 expires in 2008. 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
Pennsylvania Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 2000, 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 auditing standards
generally accepted in the United States of America. 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, 2000 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, 2000, the results of its operations,
the changes in its net assets, and the financial highlights for the
respective stated periods in accordance with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 1, 2000
</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, 2000 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
William E. Zitelli--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*
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].