CMA
CMA CONNECTICUT
MUNICIPAL MONEY FUND
Annual Report
March 31, 1995
MERRILL LYNCH BULL LOGO
<PAGE>
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Gerald M. Richard--Treasurer
Robert Harris--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account, call (800) CMA-INFO
[(800) 262-4636].
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
CMA Connecticut
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
<PAGE>
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA Connecticut Municipal Money
Fund paid shareholders a net annualized yield of 2.54%*. As of March
31, 1995, the Fund's 7-day yield was 3.18%.
The Environment
During the six months ended March 31, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
(GDP) was reported to have increased at a revised 5.1% rate during
the final quarter of 1994, declines in other indicators such as new
home sales and durable goods orders registered thus far in 1995 have
led investors to anticipate that the economy is losing enough
momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
However, as US stock and bond markets have risen on more positive
economic news, the value of the US dollar reached new lows relative
to the yen and the Deutschemark. Persistent trade deficits and
exports of capital from the United States have kept the US currency
in a decade-long decline relative to the Japanese and German
currencies. Over the longer term, since the United States has the
highest productivity among industrialized nations and among the
lowest labor costs, demand for US dollar-denominated assets may
improve. However, a reduction of the still-widening US trade deficit
may be necessary before the US dollar appreciates substantially
relative to the yen and the Deutschemark.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and
well-contained inflationary pressures would provide further
assurance that the peak in interest rates is behind us. On the other
hand, indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
<PAGE>
Investment Outlook and Strategy
Interest rates on short-term securities finished the six-month
period ended March 31, 1995 higher than at the beginning of the
period. However, interest rates were volatile during the March
period. The restrictive monetary policy initiated by the Federal
Reserve Board in February 1994 was maintained during the six-month
period ended March 31, 1995. On November 15, 1994 the Federal
Reserve Board made its most aggressive move of the cycle by hiking
both the Federal Funds rate and the discount rate 75 basis points
(0.75%) to 5.50% and 4.75%, respectively. The Federal Reserve Board
followed this move with a 50 basis point increase on February 1,
1995, making it the seventh interest rate hike of the cycle and
doubling the Federal Funds rate to its current level of 6.00%. The
first half of the six-month period ended March 31, 1995 was one of
rising short-term interest rates as investors drove interest rates
up in anticipation of additional Federal Reserve Board tightening.
However, the larger-than-expected increase in the Federal Funds rate
in November 1994 led investors to believe that the Federal Reserve
Board would achieve the elusive soft landing of the US economy. This
set the stage for a rally in US financial markets which drove
interest rates sharply lower. For example, interest rates on
six-month US Treasury bills rose by nearly 110 basis points by the
beginning of December 1994 from their October 1, 1994 levels, only
to fall by approximately 50 basis points by March 31, 1995 for a net
increase of approximately 60 basis points.
During the six-month period ended March 31, 1995, newly elected
Governor John Rowland became the first Republican to take office in
20 years. He proposed a budget which, for the first time in three
decades, actually reduces state spending. The budget emphasized
shrinking state government, reducing welfare payout and a 20%
reduction of the personal income tax rate. The benefits of the 1990s
revenue restructuring are beginning to pay dividends. For the first
time in many years, the combined General Fund and Debt Service Fund
will show a surplus of $75 million. Another encouraging factor is
that personal income has risen at a faster rate than state spending
for the first time in 10 years. The State does face some challenges
in the upcoming fiscal year because of the continued slow recovery
of its economy versus growth on a national level. Connecticut
continues to experience cutbacks in two main sectors: insurance and
defense contracting, as well as a high general obligation debt per
capita of $1,733 compared to the national level of $399.
The Federal Reserve Board continued its restrictive monetary policy
throughout the six-month period ended March 31, 1995, and most
economists agree that the current monetary tightening cycle is not
yet complete. Although certain sectors of the economy show signs of
a slowdown, it is unclear whether the Federal Reserve Board is ahead
of inflation. Therefore, we maintained a defensive posture and
reduced the average portfolio maturity of the Fund from the 70-day
range at the beginning of the period to the 30-day range by early
February 1995. For the six-month period ended March 31, 1995, short-
term issuance totaled $156.6 million in Connecticut compared to $209
million in the previous six-month period.
In Conclusion
We appreciate your continued interest in CMA Connecticut Municipal
Money Fund, and we look forward to serving your investment needs in
the months and years ahead.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
April 28, 1995
Portfolio Abbreviations for CMA Connecticut Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UPDATES Unit Priced Demand Adjustable
Tax-Exempt Securities
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Connecticut-- $ 2,000 Branford, Connecticut, BAN, UT, 4.50% due 8/22/1995 $ 2,004
88.8% 1,075 Bristol, Connecticut, BAN, UT, 3.72% due 5/18/1995 1,075
5,000 Cheshire, Connecticut, BAN, GO, 4.25% due 8/10/1995 5,009
4,500 Columbia, Connecticut, BAN, UT, 4.25% due 4/12/1995 4,501
12,900 Connecticut State Development Authority, Health Care Revenue Bonds
(Independent Living Project), VRDN, 4.05% due 7/01/2015 (a) 12,900
5,420 Connecticut State Development Authority, IDA, Revenue Bonds (Sealectro
Corporation Project), 4.625% due 12/01/1997 (a) 5,420
Connecticut State Development Authority, PCR, Refunding, VRDN (a):
4,100 (Connecticut Light & Power Co., Project), AMT, Series B, 4.25% due
9/01/2028 4,100
8,600 (Connecticut Light & Power Co., Project), Series A, 4.10% due 9/01/2028 8,600
7,700 (Western Massachusetts Electric Co.), Series A, 4.05% due 9/01/2028 7,700
Connecticut State Development Authority Revenue Bonds (Solid Waste Exeter
Project), VRDN, AMT (a):
3,000 Series A, 4.15% due 12/01/2019 3,000
400 Series C, 4.15% due 12/01/2019 400
24,600 Connecticut State Economic Recovery Notes, VRDN, Series B, 4.10% due
6/01/1996 (a) 24,600
700 Connecticut State GO, Series B, 5.50% due 5/15/1995 702
Connecticut State Health and Educational Facilities Authority Revenue Bonds,
VRDN (a):
1,400 (Kent School), Series A, 3.80% due 7/01/2023 1,400
3,815 (Yale-New Haven Hospital), Series E, 3.70% due 6/01/2012 3,815
5,250 Connecticut State Health and Educational Facilities Authority Revenue Bonds
(Windham Community Memorial Hospital), UPDATES, CP, 3.40% due
4/11/1995 (a) 5,250
Connecticut State Health and Educational Facilities Authority Revenue Bonds
(Yale University), CP:
5,075 Series L, 4.05% due 4/06/1995 5,075
3,050 Series L, 3.75% due 5/09/1995 3,050
4,900 Series M, 4.05% due 4/06/1995 4,900
5,800 Series N, 4.05% due 4/06/1995 5,800
200 Series O, 3.70% due 4/06/1995 200
1,450 Series O, 4.05% due 4/06/1995 1,450
5,000 Series P, 4.05% due 4/06/1995 5,000
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Connecticut Connecticut State HFA (Housing Mortgage Finance Program):
(concluded) $ 9,365 CP, AMT, Series D, 4.20% due 4/06/1995 $ 9,365
1,800 CP, AMT, Series D, 4.10% due 4/11/1995 1,800
5,350 CP, AMT, Series D, 3.85% due 5/08/1995 5,350
1,975 Series A, 3.30% due 5/15/1995 1,975
4,100 Series G, Sub-Series G-1, 3.55% due 5/15/1995 4,100
2,775 Sub-Series D-2, 3.65% due 5/15/1995 2,775
13,000 Connecticut State Municipal Electric Energy Power Supply System Revenue
Bonds, CP, Series A, 3.75% due 5/05/1995 13,000
Connecticut State Special Assessment Unemployment Compensation, Advanced
Fund Revenue Bonds:
5,000 Series A, 3.60% due 5/15/1995 4,999
33,000 VRDN, Series B, 4.20% due 11/01/2001 (a) 33,000
9,800 Connecticut State Special Assessment Unemployment Compensation, Advanced
Fund Revenue Bonds (Connecticut Unemployment), Series C, 3.85% due
7/01/1995 9,800
Connecticut State Special Tax Obligation Revenue Bonds (Transportation
Infrastructure):
1,000 Series A, 4.75% due 4/01/1995 1,000
7,595 VRDN, Second Lien, Series 1, 4.35% due 12/01/2010 (a) 7,595
2,800 Groton City, Connecticut, BAN, 4.50% due 11/15/1995 2,808
1,000 Hartford, Connecticut, GO, UT, 6.50% due 6/15/1995 1,006
2,250 New Canaan, Connecticut, BAN, UT, 4.25% due 8/15/1995 2,252
1,000 Newtown, Connecticut, BAN, UT, 4.25% due 6/15/1995 1,000
4,085 Norwich, Connecticut, BAN, 4.50% due 10/05/1995 4,099
7,500 Stamford, Connecticut, Housing Authority Revenue Bonds (Morgan Street
Project), VRDN, 4.15% due 8/01/2024 (a) 7,500
1,700 Winchester, Connecticut, BAN, 4.375% due 5/10/1995 1,701
<PAGE>
Puerto Rico-- 1,200 Puerto Rico Commonwealth Government Development Bank Revenue
14.1% Refunding Bonds, VRDN, 4.10% due 12/01/2015 (a) 1,200
5,000 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Bonds, VRDN, Series X, 3.60% due 7/01/l999 (a) 5,000
775 Puerto Rico Commonwealth, Public Improvement Bonds, 9.375% due
7/01/1995 815
10,500 Puerto Rico Housing Finance Corporation, Medical Revenue Bonds, VRDN,
3.95% due 10/01/2011(a) 10,500
Puerto Rico Industrial, Medical and Environmental Pollution Control
Facilities, Financing Authority Revenue Bonds:
6,500 (Ana G. Mendez Educational Project), CP, 3.70% due 5/09/1995 6,500
2,250 (Reynolds Metals Co. Project), 4% due 9/01/1995 2,250
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental
Control Facilities Financing Authority, Series A, CP:
6,000 3.65% due 4/06/1995 6,000
4,500 3.70% due 5/09/1995 4,500
Total Investments (Cost--$267,841*)--102.9% 267,841
Liabilities in Excess of Other Assets--(2.9%) (7,443)
--------
Net Assets--100.0% $260,398
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1995.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$267,841,159) (Note 1a) $ 267,841,159
Cash 296,575
Interest receivable 1,603,077
Deferred organization expenses (Note 1d) 8,049
Prepaid registration fees and other assets (Note 1d) 17,559
--------------
Total assets 269,766,419
--------------
<PAGE>
Liabilities:
Payables:
Securities purchased $ 9,108,107
Investment adviser (Note 2) 115,354
Distributor (Note 2) 84,004 9,307,465
--------------
Accrued expenses and other liabilities 60,678
--------------
Total liabilities 9,368,143
--------------
Net Assets $ 260,398,276
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 26,053,572
Paid-in capital in excess of par 234,482,149
Undistributed investment income--net 9,081
Accumulated realized capital losses--net (Note 4) (146,526)
--------------
Net Assets--Equivalent to $1.00 per share based on 260,535,721 shares of
beneficial interest outstanding $ 260,398,276
==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 8,348,335
Expenses:
Investment advisory fees (Note 2) $ 1,290,608
Distribution fees (Note 2) 320,966
Professional fees 46,726
Transfer agent fees (Note 2) 39,502
Registration fees (Note 1d) 36,737
Accounting services (Note 2) 34,816
Custodian fees 22,473
Printing and shareholder reports 15,530
Amortization of organization expenses (Note 1d) 7,475
Pricing fees 6,106
Trustees' fees and expenses 3,428
Other 6,016
--------------
Total expenses 1,830,383
--------------
Investment income--net 6,517,952
Realized Loss on Investments--Net (Note 1c) (31,149)
--------------
Net Increase in Net Assets Resulting from Operations $ 6,486,803
==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <C> <C>
Operations:
Investment income--net $ 6,517,952 $ 4,135,741
Realized loss on investments--net (31,149) (18,319)
-------------- --------------
Net increase in net assets resulting from operations 6,486,803 4,117,422
-------------- --------------
Dividends to Shareholders (Note 1e):
Investment income--net (6,504,917) (4,132,578)
-------------- --------------
Net decrease in net assets resulting from dividends to shareholders (6,504,917) (4,132,578)
-------------- --------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 944,440,136 850,975,709
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 6,504,738 4,132,548
-------------- --------------
950,944,874 855,108,257
Cost of shares redeemed (940,566,013) (836,486,718)
-------------- --------------
Net increase in net assets derived from beneficial interest transactions 10,378,861 18,621,539
-------------- --------------
Net Assets:
Total increase in net assets 10,360,747 18,606,383
Beginning of year 250,037,529 231,431,146
-------------- --------------
End of year* $ 260,398,276 $ 250,037,529
============== ==============
<FN>
*Undistributed investment income--net (Note 1f) $ 9,081 $ 283
============== ==============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The following per share data and ratios have been derived April 29,
from information provided in the financial statements. 1991++ to
For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993 1992
<S> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Investment income--net .03 .02 .02 .03
-------- -------- -------- --------
Total from investment operations .03 .02 .02 .03
-------- -------- -------- --------
Less dividends from investment income--net (.03) (.02) (.02) (.03)
-------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Investment Return 2.54% 1.77% 2.20% 3.56%*
======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .58% .58% .51% .28%*
======== ======== ======== ========
Expenses, net of reimbursement .71% .70% .63% .41%*
======== ======== ======== ========
Expenses .71% .70% .73% .81%*
======== ======== ======== ========
Investment income--net 2.53% 1.76% 2.17% 3.46%*
======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $260,398 $250,038 $231,431 $197,895
======== ======== ======== ========
<FN>
*Annualized.
++Commencement of Operations.
<PAGE>
See Notes to Financial Statements.
</TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Connecticut Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a
non-diversified, open-end management investment company. The
following is a summary of significant accounting policies followed
by the Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income (including amortization of
premium and discount) is recognized on the accrual basis. Realized
gains and losses on security transactions are determined on the
identified cost basis.
(d) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a
straight-line basis over a five-year period. Prepaid registration
fees are charged to expense as the related shares are issued.
<PAGE>
(e) Dividends to shareholders--The Fund declares dividends daily and
reinvests daily such dividends (net of non-resident alien tax
withheld) in additional fund shares at net asset value. Dividends
are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized
capital gains, if any, are normally distributed annually after
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.
(f) Reclassification--Generally accepted accounting principles
require that certain differences between undistributed net
investment income for financial reporting and tax purposes, if
permanent, be reclassified to accumulated net realized capital
losses. Accordingly, current year's permanent book/tax differences
of $4,237 have been reclassified from undistributed net investment
income to accumulated net realized capital losses. These
reclassifications have no effect on net assets or net asset value
per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., 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.
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Adviser during any year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment.
Pursuant to the Distribution and Shareholder Servicing Plan in
compliance with Rule 12b-1 under the Investment Company Act of 1940,
Merrill Lynch, Pierce, Fenner & Smith Inc. ("MLPF&S") receives a
distribution fee from the Fund at the end of each month at the
annual rate of 0.125% of average daily net assets of the Fund. The
distribution fee is to compensate MLPF&S financial consultants and
other directly involved branch office personnel for selling shares
of the Fund and for providing direct personal services to
shareholders. The distribution fee is not compensation for the
administrative and operational services rendered to the Fund by
MLPF&S in processing share orders and administering shareholder
accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of
ML & Co., is the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period
corresponds to the amounts included in the Statements of Changes in
Net Assets for net proceeds from sale of shares and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per
share.
4. Capital Loss Carryforward:
At March 31, 1995, the Fund had a net capital loss carryforward of
approximately $147,000, of which $80,000 expires in 2000, $30,000
expires in 2001, $10,000 expires in 2002 and $27,000 expires in
2003. This amount will be available to offset like amounts of any
future taxable gains.
<PAGE>
<AUDIT-REPORT>
CMA CONNECTICUT MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Connecticut 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
Connecticut Municipal Money Fund of CMA Multi-State Municipal Series
Trust as of March 31, 1995, the related statements of operations for
the year then ended and changes in net assets for each of the years
in the two-year period then ended, and the financial highlights for
each of the years in the three-year period then ended and the period
April 29, 1991 (commencement of operations) to March 31, 1992. These
financial statements and the financial highlights are the
responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and the financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at March
31, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
CMA Connecticut Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1995, the results of its operations,
the changes in its net assets, and the financial highlights for the
respective stated periods in conformity with generally accepted
accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
April 28, 1995
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Connecticut Municipal Money Fund of CMA Multi-State Municipal Series
Trust during the taxable year ended March 31, 1995 qualify as tax-
exempt interest dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed during the
Fund's taxable year ended March 31, 1995.
Please retain this information for your records.
