CMA
CMA OHIO
MUNICIPAL MONEY FUND
Annual Report
March 31, 1998
MERRILL LYNCH BULL LOGO
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
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
Merrill Lynch 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].
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government. Statements and
other information herein are as dated and are subject to change.
CMA Ohio
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1998, CMA Ohio Municipal Money Fund
paid shareholders a net annualized yield of 3.15%.* As of March 31,
1998, the Fund's 7-day yield was 3.07%.
Economic Environment and
Investment Strategy
The state of Ohio continued to experience the after-effects of a
prolonged economic expansion, since tight labor conditions during
the six-month period ended March 31, 1998 constrained further
economic growth. Seasonally adjusted unemployment rates in Ohio are
slightly below the national average. Subsequently, Ohio's economy,
while still quite strong, is expanding at a rate below the national
average. The benign inflationary trend and positive employment
statistics have translated into consumer confidence that remains at
historically high levels. These positive developments, combined with
low interest rates and readily available funds, have contributed to
strong construction and housing activity in the state. In addition,
strong home sales activity is supporting consumer demand for various
home furnishings. Overall, the state of Ohio continues to remain on
a positive economic trend.
The strength in the state's economic conditions continued to
translate into positive revenue streams. For the nine-month period
ended March 31, 1998, total revenue collections for Ohio's fiscal
year 1998 have amounted to $12.6 billion or 3.7% above the
comparable period last year and slightly over budget estimates.
These positive revenue streams allowed the state to avoid borrowing
in the short-term municipal market to finance daily activities. The
various Ohio municipalities have also benefited from the strong
economic conditions, and borrowing levels for the six-month period
ended March 31, 1998 remained at a moderate $500 million.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
As discussed in our September 30, 1997 letter to shareholders, CMA
Ohio Municipal Money Fund continued to maintain a neutral approach
to the market. This strategy proved to be an appropriate one as
economic statistics continued to be contradictory, with tight labor
conditions and economic strength being offset by benign inflationary
data. The Federal Reserve Board also maintained an unchanged
interest rate policy with the Federal Funds rate at 5.50% for the
duration of the period. In addition, complicating the economic
picture even more was the unfolding of a financial crisis in Asia
during the first half of the period. The turmoil that has been
created by the Asian crisis continued to leave questions as to the
impact on the US economy as well as what decisions the Federal
Reserve Board might make on interest rates.
The average life of the Fund, which was maintained in the 60-day
range for the first half of the period, was allowed to decline to
the 45-day range by March 31, 1998. We were able to accomplish this
by selectively purchasing municipal notes as the various Ohio
municipalities completed their annual issuance. We utilized this
period as an opportunity to prepare the Fund for an anticipated
shortage of municipal note issuance in the second half of the
period. We took advantage of a spike in variable rate demand note
(VRDN) yields created from year-end pressures and then began to
reduce our exposure to these VRDN securities toward the end of
December. The primary reason for this reduction in VRDN securities
was the anticipation of a decline in their yields during the second
half of the period created from large supply imbalances. Overall,
the Fund was well positioned during the fiscal year ended March 31,
1998 to take advantage of market conditions as they presented
themselves, while offering an attractive tax-exempt yield to its
shareholders.
During the months of April and May, we expect to concentrate on
building liquidity as we need to prepare to meet seasonal tax-
related redemptions. We will continue to maintain a neutral approach
to the market as uncertainties still exist regarding the economic
weakness in Asia and its impact on the US economy. We will
selectively pursue short-term municipal notes for diversification
purposes when attractive opportunities exist. Additionally, we will
continue to monitor and adjust our market strategy as economic
conditions change. However, as a result of the strong economic
performance of the state, we continue to expect a reduced amount of
short-term note issuance. Finally, we continue to closely monitor
credit quality while seeking to offer an attractive tax-exempt yield
to the Fund's shareholders.
In Conclusion
We thank you for your support of CMA Ohio Municipal Money Fund, and
we look forward to serving your investment needs in the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
(Kevin A. Schiatta)
Kevin A. Schiatta
Vice President and Portfolio Manager
April 10, 1998
CMA OHIO MUNICIPAL MONEY FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Ohio Municipal Money Fund of CMA Multi-State Municipal Series Trust
during its taxable year ended March 31, 1998 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.
Portfolio Abbreviations for CMA Ohio Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio--99.3% $ 890 Allen County, Ohio, IDR (Nickles Bakery Project), VRDN, 4.25% due 1/02/2003 (a) $ 890
2,175 Anna, Ohio, Local School District, BAN, 4.39% due 4/06/1998 2,175
3,600 Ashtabula County, Ohio, Hospital Facilities Revenue Bonds (Ashtabula County
Medical Center Project), VRDN, 3.75% due 12/01/2007 (a) 3,600
2,160 Ashtabula County, Ohio, IDR (Neff-Perkins Co. Project), VRDN, AMT, 3.85%
due 6/01/2005 (a) 2,160
Barberton, Ohio, City School District, BAN:
2,000 4.34% due 6/01/1998 2,001
5,000 UT, Series B, 4.48% due 6/01/1998 5,006
315 Brooklyn Heights, Ohio, IDR (ATC Nymold Inc.), VRDN, AMT, 3.85% due 2/01/2002 (a) 315
Butler County, Ohio, BAN:
3,700 4.29% due 8/06/1998 3,705
2,000 4.25% due 10/22/1998 2,004
2,800 Cadiz, Ohio, BAN, 4.40% due 6/18/1998 2,803
Canal Winchester, Ohio, BAN:
2,800 4.375% due 8/11/1998 2,803
1,000 4.30% due 1/12/1999 1,002
Canal Winchester, Ohio, Local School District, BAN, UT:
3,500 4.25% due 6/17/1998 3,504
2,350 4.30% due 6/17/1998 2,352
1,055 Canton, Ohio, IDR (Accu Plate Project), VRDN, AMT, 3.89% due 3/01/2017 (a) 1,055
3,575 Cincinnati and Hamilton County, Ohio, Port Authority, Economic Development
Revenue Bonds (Berthesda One Ltd.), 4% due 8/01/1998 3,575
7,000 Cincinnati, Ohio, City School District, BAN, 4.32% due 9/17/1998 7,012
1,770 Clark County, Ohio, BAN, 4.40% due 6/30/1998 1,772
1,700 Clermont County, Ohio, IDR (Southern Ohio Fabricator), VRDN, AMT, Series A,
3.95% due 9/01/2005 (a) 1,700
9,000 Cleveland, Ohio, Airport System Revenue Refunding Bonds, VRDN, AMT, Series D,
3.80% due 1/01/2027 (a) 9,000
2,750 Columbiana County, Ohio, IDR (The Hall China Project), VRDN, AMT, 3.90%
due 1/01/2007 (a) 2,750
Cuyahoga County, Ohio, Health Care Facilities Revenue Bonds, VRDN (a):
700 (Benjamin Rose Institute Project), Series B, 3.70% due 12/01/2000 700
4,900 (Catholic Charities Facilities), 3.80% due 7/01/2012 4,900
Cuyahoga County, Ohio, IDR, VRDN (a):
940 (Athens Pastries Inc. Project), AMT, 3.89% due 6/03/2009 940
5,155 (Cleveland E Excel Ltd.), AMT, 3.85% due 3/01/2019 5,155
595 (Erieview Metal Treating Project), AMT, 3.89% due 5/01/2010 595
2,290 Refunding (Curtiss Wright Project), 3.80% due 12/01/2008 2,290
3,150 Refunding (Parma Care Center, Inc.), 3.89% due 12/01/2011 3,150
945 Refunding (Pleasant Lake Association Project), 3.74% due 5/01/2011 945
3,400 (Suburban Pavilion Inc. Project), AMT, 4.25% due 10/02/2006 3,400
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 5,000 Dayton, Ohio, BAN, 3.95% due 9/15/1998 $ 5,003
(continued) 4,000 Dublin, Ohio, City School District, GO, UT, 4.33% due 5/13/1998 4,002
4,000 Eagle Tax-Exempt Trust, Cleveland, Ohio, Class A, 3.60% due 10/01/1998 4,000
Eagle Tax-Exempt Trust, Custodial Receipts (Ohio Edison), VRDN (a):
5,000 Series 95, Class 3501, 3.77% due 7/01/2015 5,000
5,000 Series 95, Class 3502, 3.77% due 7/01/2015 5,000
1,000 East Palestine, Ohio, BAN, 3.93% due 8/28/1998 1,000
Erie County, Ohio, IDR, VRDN (a):
500 (Brighton Manor Company Project), AMT, 3.85% due 11/01/2016 500
1,590 Refunding (Huron Health Care Center Project), 3.75% due 8/01/2007 1,590
3,300 Franklin County, Ohio, Health Systems Revenue Bonds (Franciscan Sisters-
Saint Anthony Medical Facility), VRDN, Series B, 3.70% due 7/01/2015 (a) 3,300
Franklin County, Ohio, Hospital Revenue Bonds, VRDN (a):
5,900 (Children's Hospital Project), Series B, 3.85% due 12/01/2014 5,900
1,000 (Lutheran Senior City Inc. Project), 3.65% due 5/01/2015 1,000
Franklin County, Ohio, Hospital Revenue Refunding and Improvement Bonds
(US Health Corp. Project):
500 Series C, 4.10% due 6/01/1998 500
2,900 VRDN, Series A, 3.70% due 12/01/2021 (a) 2,900
Franklin County, Ohio, IDR:
1,325 (GSW Building Association Ltd.), 3.80% due 5/01/1998 1,325
2,500 Refunding (Heekin Can Inc. Project), VRDN, AMT, 3.95% due 5/01/2007 (a) 2,500
3,000 Franklin County, Ohio, M/F Housing Revenue Bonds (Colonial Courts Project),
VRDN, AMT, 3.85% due 12/01/2024 (a) 3,000
2,900 Fulton County, Ohio, IDR (Gilders Business Holdings Project), VRDN, AMT,
3.90% due 4/01/2007 (a) 2,900
1,255 Geauga County, Ohio, IDR (Neff-Perkins Co. Project), VRDN, AMT, 3.85%
due 6/01/2005 (a) 1,255
2,000 Graham, Ohio, Local School District, UT, Series A, 4.29% due 5/28/1998 2,001
1,000 Greene County, Ohio, IDR (FC Ltd./AFC Stamping), VRDN, AMT, 3.89% due
9/01/2016 (a) 1,000
546 Hamilton County, Ohio, Economic Development Revenue Bonds (Cincinnati
Performing Arts), VRDN, 3.85% due 6/15/2005 (a) 546
5,500 Hamilton County, Ohio, Hospital Facilities Revenue Bonds (Alliance Health),
VRDN, Series F, 2.95% due 1/01/2018 (a)(b) 5,500
1,160 Huber Heights, Ohio, IDR (Lasermike Inc. Project), VRDN, AMT, 3.34% due
12/01/2014 (a) 1,160
1,000 Lancaster, Ohio, BAN, 4.25% due 11/18/1998 1,002
3,400 Lorain County, Ohio, BAN, 4.22% due 9/17/1998 3,404
3,155 Lorain County, Ohio, IDR (DGR Investment Ltd./Trimline Die Corp.), VRDN, AMT,
3.34% due 12/01/2012 (a) 3,155
5,000 Lorain County, Ohio, Independent Living Facilities Revenue Bonds (Elyria
United Methodist Project), VRDN, Series A, 3.80% due 6/01/2022 (a) 5,000
2,910 Lucas County, Ohio, Economic Development Revenue Bonds (Hammill
Manufacturing Co. Project), VRDN, AMT, 3.95% due 5/01/2010 (a) 2,910
200 Lucas County, Ohio, Hospital Revenue Bonds (Sunshine Children's Home Project),
VRDN, 3.80% due 12/01/2007 (a) 200
4,690 Lucas County, Ohio, IDR (Reichert Stamping Co. Project), VRDN, 3.90% due
7/15/2006 (a) 4,690
6,000 Lucas County, Ohio, M/F Housing Revenue Bonds (Virigina Lake Apartments Project),
AMT, 3.80% due 11/27/1998 6,000
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 5,000 Marion County, Ohio, BAN, 4.10% due 11/23/1998 $ 5,007
(continued) 260 Marion County, Ohio, Hospital Improvement Revenue Bonds (Pooled Lease
Program), VRDN, 3.75% due 5/01/2019 (a) 260
1,860 Marion County, Ohio, IDR (Mid-Ohio Packaging Company Project), VRDN, AMT,
3.90% due 11/01/2015 (a) 1,860
9,300 Mason, Ohio, Economic Development Revenue Bonds (Cedar Village Project),
VRDN, 3.67% due 12/01/2017 (a) 9,300
2,780 Mentor, Ohio, IDR (Metcor Partnership/Tridelt), VRDN, AMT, 3.85% due
12/01/2008 (a) 2,780
3,500 Mercer County, Ohio, BAN, 4.25% due 9/25/1998 3,504
6,600 Montgomery County, Ohio, Hospital Revenue Bonds (Miami Valley Hospital), CP,
Series C, 3.60% due 5/07/1998 6,600
2,370 Montgomery County, Ohio, IDR (Citywide Development Corp. Project), VRDN,
AMT, 3.85% due 12/01/2013 (a) 2,370
590 Montgomery County, Ohio, IDR (Town Centers Ltd. Partnership Project), AMT,
3.95% due 5/15/1998 590
1,615 Moraine, Ohio, IDR, Refunding (Gray America Corporation Project), VRDN, AMT,
3.85% due 12/01/2001 (a) 1,615
450 Mount Gilead, Ohio, BAN, 4% due 11/05/1998 450
1,000 New Knoxville, Ohio, Local School District, BAN, UT, 4.53% due 6/16/1998 1,001
6,200 Northwest, Ohio, Local School District (Hamilton County), BAN, UT, 4.84% due
6/17/1998 6,213
1,790 Obetz, Ohio, IDR (HFI Inc. Project), VRDN, AMT, 3.85% due 10/01/2003 (a) 1,790
8,045 Ohio State Air Quality Development Authority, Environmental Improvement
Revenue Refunding Bonds (USX Project), 3.55% due 6/15/1998 8,045
7,500 Ohio State Air Quality Development Authority, PCR (Duquesne Light Co. Project),
CP, Series B, 3.70% due 5/11/1998 7,500
2,700 Ohio State Air Quality Development Authority, Revenue Refunding Bonds
(Cincinnati Gas and Electric), VRDN, Series A, 3.65% due 9/01/2030 (a) 2,700
Ohio State Higher Educational Facilities, Commission Revenue Bonds, VRDN (a):
4,555 (Facilities Pooled Financing), 3.55% due 12/01/2016 4,555
2,760 (Mount Vernon), 3.80% due 9/01/2009 2,760
2,825 Ohio State, IDR, Refunding (General Motors Corp. Project), VRDN, 3.85% due
9/01/2001 (a) 2,825
5,000 Ohio State Solid Waste Disposal Revenue Bonds (USG Corp. Project), VRDN, AMT,
3.75% due 8/01/2032 (a) 5,000
13,500 Ohio State Solid Waste Revenue Bonds (BP Exploration & Oil Project), VRDN, AMT,
3.75% due 2/01/2033 (a) 13,500
3,700 Ohio State Turnpike Commission Revenue Bonds (Municipal Securities Trust
Receipts), VRDN, Series SGA-60, 3.80% due 2/15/2026 (a)(b) 3,700
2,120 Ohio State University, General Receipts, VRDN, 3.70% due 12/01/2027 (a) 2,120
9,000 Ohio State Water Development Authority, Environmental Improvement Revenue
Bonds (Mead Corp. Project), VRDN, AMT, 3.75% due 3/01/2023 (a) 9,000
3,000 Ohio State Water Development Authority, PCR(Duquesne Light Co. Project), CP,
AMT, 3.70% due 5/07/1998 3,000
8,500 Ohio State Water Development Authority, Pollution Control Facilities Revenue
Bonds (Ohio Edison Company), AMT, Series A, 4.10% due 5/01/1998 8,500
6,745 Ohio State Water Development Authority Revenue Bonds, Series A, 3.75% due
9/01/1998 6,745
3,000 Ohio State Water Development Authority, Solid Waste Disposal Revenue Bonds
(American Steel & Wire Corp.), VRDN, 3.85% due 9/01/2025 (a) 3,000
3,600 Ontario, Ohio, BAN, 4.20% due 12/23/1998 3,606
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 5,000 Ottawa County, Ohio, BAN, 4.125% due 8/06/1998 $ 5,004
(continued) 200 Paulding County, Ohio, IDR, Refunding (Countrymark Cooperative Inc. Project),
VRDN, 3.70% due 3/01/1999 (a) 200
5,400 Paulding County, Ohio, Solid Waste Disposal Revenue Bonds (Lafarge Corp.
Project), VRDN, AMT, 3.50% due 8/01/2026 (a) 5,400
Pickerington, Ohio, Local School District, BAN, UT:
1,500 4.07% due 8/03/1998 1,502
1,500 4.24% due 8/03/1998 1,502
Portage County, Ohio, IDR, VRDN, AMT (a):
6,750 (Commercial Turf Products Ltd. Project), 3.85% due 5/01/2022 6,750
1,370 (John E. Susong Project), Series B, 3.89% due 5/02/2016 1,370
1,685 (NCSP L.P. Project), 3.85% due 7/01/2014 1,685
2,585 (PM Property One, Ltd.), 3.85% due 11/01/2012 2,585
2,075 Refunding (John E. Susong Project), Series A, 3.89% due 5/02/2011 2,075
1,000 Rickenbacker, Ohio, Port Authority, IDR, Refunding (Rickenbacker Holdings, Inc.),
VRDN, 3.75% due 12/01/2010 (a) 1,000
1,250 Ross County, Ohio, Hospital Revenue Bonds (Medical Center Hospital Project),
VRDN, 3.65% due 12/01/2020 (a) 1,250
1,700 Saint Mary's, Ohio, BAN, 4.40% due 6/17/1998 1,701
1,100 Salem, Ohio, BAN, 4.45% due 5/28/1998 1,101
Sandusky County, Ohio, IDR, VRDN (a):
1,300 (Brighton Manor Co. Project), AMT, 3.85% due 12/01/2016 1,300
1,910 (Crown Battery Manufacturing Co.), AMT, 3.89% due 8/06/2003 1,910
3,000 (Louis G. Freeman Co. Project), AMT, 3.89% due 7/01/2017 3,000
4,160 (Magnesium Refining Technologies Inc. Project), Series A, 3.89%
due 9/01/2007 4,160
2,000 Seneca County, Ohio, Health Care Facilities Revenue Bonds (Good Shepherd Home
Project), VRDN, 3.80% due 10/01/2017 (a) 2,000
235 Solon, Ohio, IDR (Tameran Project), VRDN, AMT, 3.89% due 11/01/2004 (a) 235
Stark County, Ohio, IDR, VRDN, AMT (a):
2,345 (Superior Dairy Inc. Project), 3.85% due 5/01/2003 2,345
1,340 (Wilkof-Morris Project), 3.89% due 1/01/2010 1,340
1,580 Streetsboro, Ohio, BAN, 4.15% due 10/09/1998 1,581
2,060 Strongsville, Ohio, IDR (E&E Properties/Dupli System Project), VRDN, 3.90%
due 2/01/2010 (a) 2,060
400 Summit County, Ohio, Hospital Facilities Revenue Bonds (Cuyahoga Falls
General Hospital), VRDN, Series B, 3.70% due 7/01/1999 (a) 400
Summit County, Ohio, IDR:
820 (Ohio Camshaft Project), 3.95% due 4/01/1998 820
950 (Texler Inc. Project), AMT, 3.85% due 5/01/1998 950
Summit County, Ohio, IDR, VRDN (a):
1,250 (Ace Precision Industries Inc. Project), AMT, 3.90% due 7/01/2014 1,250
1,595 (Austin Printing Co. Inc. Project), AMT, 3.90% due 8/01/2006 1,595
2,260 (Delco Corp. Project), AMT, 3.90% due 6/01/2016 2,260
340 (Forest Manufacturing Project), 3.85% due 11/01/2001 340
720 (Hardcoating Project), 3.90% due 7/01/2002 720
140 (Lucerne Production Project), AMT, 3.85% due 6/01/2002 140
1,150 (Sigma Properties Project), 3.89% due 6/01/2008 1,150
1,000 (Steffen Bookbinders Project), 3.90% due 11/01/2004 1,000
450 (Struktol Project), AMT, Series A, 3.85% due 6/01/2002 450
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1998 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Ohio $ 1,590 Troy, Ohio, Economic Development Revenue Bonds (L&CP Corp. Project), AMT,
(concluded) 3.90% due 6/01/1998 $ 1,590
1,920 Trumbull County, Ohio, IDR (ATD Corp. Project), VRDN, AMT, 3.89% due
8/01/2010 (a) 1,920
2,500 Union County, Ohio, IDR (Union Aggregates Co. Project), VRDN, AMT, 3.95% due
11/01/2006 (a) 2,500
1,215 Valley View, Ohio, IDR (Porter Development Project), VRDN, AMT, 3.90% due
5/01/2016 (a) 1,215
1,515 Valley View, Ohio, IDR, Refunding and Improvement (Sweet Valley Dillion Project),
VRDN, AMT, 3.90% due 4/01/2011 (a) 1,515
2,255 Vinton County, Ohio, Local School District, 4.37% due 7/21/1998 2,260
Wadsworth, Ohio, City School District, BAN, UT:
1,400 4.23% due 8/04/1998 1,402
1,300 4.375% due 8/04/1998 1,302
1,980 Warren County, Ohio, IDR (Kardol Quality Products Project), VRDN, AMT,
3.95% due 12/01/2014 (a) 1,980
2,330 Willoughby, Ohio, IDR (Malish Brush & Specialty), VRDN, AMT, 3.85% due
6/01/2009 (a) 2,330
2,860 Wood County, Ohio, Economic Development Revenue Bonds (Great Lakes
Window Project), AMT, 4.60% due 6/01/1998 2,860
Wood County, Ohio, IDR, VRDN, AMT (a):
1,145 (B&B Box Co. Project), 3.90% due 3/01/2011 1,145
1,000 (Centaur Tool & Die Inc. Project), 3.90% due 8/01/2010 1,000
1,410 Woodster, Ohio, IDR (Litco International Inc. Project), VRDN, AMT, 3.90% due
5/01/2010 (a) 1,410
3,055 Zanesville-Muskingum County, Ohio, Port Authority, IDR (B.E. Products Inc.
Project), VRDN, AMT, 3.85% due 9/01/2004 (a) 3,055
Total Investments (Cost--$392,013*)--99.3% 392,013
Other Assets Less Liabilities--0.7% 2,702
--------
Net Assets--100.0% $394,715
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1998.
(b)MBIA Insured.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1998
<S> <C> <C>
Assets:
Investments, at value (identified cost--$392,013,283) (Note 1a) $ 392,013,283
Cash 80,896
Interest receivable 2,961,282
Prepaid registration fees and other assets (Note 1d) 10,283
---------------
Total assets 395,065,744
---------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 171,178
Distributor (Note 2) 114,188 285,366
---------------
Accrued expenses and other liabilities 65,834
---------------
Total liabilities 351,200
---------------
Net Assets $ 394,714,544
===============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized $ 39,474,610
Paid-in capital in excess of par 355,271,488
Accumulated realized capital losses--net (Note 4) (31,554)
---------------
Net Assets--Equivalent to $1.00 per share based on 394,746,098 shares of
beneficial interest outstanding $ 394,714,544
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1998
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned $ 13,532,283
Expenses:
Investment advisory fees (Note 2) $ 1,784,810
Distribution fees (Note 2) 440,461
Transfer agent fees (Note 2) 60,851
Registration fees (Note 1d) 58,377
Accounting services (Note 2) 55,454
Professional fees 51,477
Custodian fees 31,359
Pricing fees 14,917
Trustees' fees and expenses 2,634
Printing and shareholder reports 325
Other 3,378
---------------
Total expenses 2,504,043
---------------
Investment income--net 11,028,240
---------------
Net Increase in Net Assets Resulting from Operations $ 11,028,240
===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended
March 31,
Increase (Decrease) in Net Assets: 1998 1997
<S> <C> <C>
Operations:
Investment income--net $ 11,028,240 $ 8,896,526
--------------- ---------------
Net increase in net assets resulting from operations 11,028,240 8,896,526
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net (11,028,240) (8,896,526)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders (11,028,240) (8,896,526)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,402,701,781 1,162,499,097
Net asset value of shares issued to shareholders in reinvestment
of dividends (Note 1e) 11,028,169 8,896,416
--------------- ---------------
1,413,729,950 1,171,395,513
Cost of shares redeemed (1,346,188,447) (1,126,409,501)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions 67,541,503 44,986,012
--------------- ---------------
Net Assets:
Total increase in net assets 67,541,503 44,986,012
Beginning of year 327,173,041 282,187,029
--------------- ---------------
End of year $ 394,714,544 $ 327,173,041
=============== ===============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA OHIO 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: 1998 1997 1996 1995 1994
<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 .02
-------- -------- -------- -------- --------
Total from investment operations .03 .03 .03 .03 .02
-------- -------- -------- -------- --------
Less dividends from investment income--net (.03) (.03) (.03) (.03) (.02)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 3.15% 3.00% 3.26% 2.65% 1.88%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses .70% .71% .73% .74% .72%
======== ======== ======== ======== ========
Investment income--net 3.09% 2.94% 3.21% 2.64% 1.86%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) $394,715 $327,173 $282,187 $237,655 $213,655
======== ======== ======== ======== ========
See Notes to Financial Statements.
</TABLE>
CMA OHIO MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Michigan Municipal Money Fund (the "Fund") is part of CMA Multi-
State Municipal Series Trust (the "Trust"). The Fund is registered
under the Investment Company Act of 1940 as a non-diversified, open-
end management investment company. The following is a summary of
significant accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) 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 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.
CMA OHIO MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLFDS, 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 $32,000, of which $23,000 expires in 2000, $5,000
expires in 2001 and $4,000 expires in 2002. This amount will be
available to offset like amounts of any future taxable gains.
<AUDIT-REPORT>
CMA OHIO MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Ohio 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 Ohio
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 1998, 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, 1998 by correspondence with the custodian. 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 Ohio Municipal Money Fund of CMA Multi-State Municipal Series
Trust as of March 31, 1998, 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 7, 1998
</AUDIT-REPORT>
