CMA
CMA Connecticut
Municipal Money Fund
Annual Report
March 31, 1996
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
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.
<PAGE>
CMA Connecticut
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1996, CMA Connecticut Municipal Money
Fund paid shareholders a net annualized yield of 3.02%*. As of March
31, 1996, the Fund's 7-day yield was 2.67%.
The Environment
As 1995 drew to a close and 1996 began, it appeared that the US
economy was losing momentum. Lackluster retail sales, increases in
initial unemployment claims (along with weak job and income growth),
and evidence of slowing in the manufacturing sector all suggested
that the rate of economic growth was slowing, with some forecasters
even suggesting the possibility of an imminent recession. With
inflationary pressures well subdued, these signs of economic
weakness led the Federal Reserve Board to follow a more
accommodative monetary policy.
However, investor perceptions regarding the rate of future economic
growth changed dramatically with the report of stronger-than-
expected employment data for February and March. As a result, the
consensus outlook regarding the direction of business activity
shifted from expectations of weakness to anticipation of a revival
in growth of the economy. Long-term interest rates rose, and the
Federal Reserve Board left monetary policy on hold.
Investors are likely to continue to focus on the probable direction
of economic activity and Federal Reserve Board monetary policy in
the weeks ahead. At this time, inflationary pressures do not seem to
be building and the manufacturing sector is still relatively weak,
which suggest that the economy is not on the verge of overheating.
Nevertheless, it is likely that any further indication of stronger
economic activity in the weeks ahead may add to investor concerns
that accelerating economic activity could lead to higher interest
rates.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
<PAGE>
Investment Outlook and Strategy
Short-term interest rates fluctuated during the six months ended
March 31, 1996 as investors reacted to mixed signals depicted by
economic data. The first half of the March period saw interest rates
fall as statistics showed a slowing economy. The Federal Reserve
Board moved to lower interest rates at both its December 1995 and
January 1996 meetings. The Federal Funds rate was trimmed by a total
of 50 basis points (0.50%) to 5.25% and the discount rate was
lowered by 25 basis points to 5.00%. However, toward the close of
the March period stronger-than-expected data forced yields higher.
Non-farm payroll employment for February increased by 705,000 jobs,
one of the largest increases ever recorded. That report along with
other strong figures pushed the yield on the one-year Treasury note
higher by approximately 60 basis points from the mid-February
levels. In light of these renewed signs of economic strength, the
Federal Reserve Board chose to leave interest rates unchanged at the
March 1996 meeting. In upcoming months, we will discover if this
strength is sustainable or simply a product of the severe winter
weather and Government shutdown.
Connecticut continues to brace for possible cutbacks when and if a
budget agreement is reached in Washington. During the current fiscal
year, the State budget includes approximately 16% for Federal
subsidies. The area of most concern will be the proposed cutbacks in
Medicaid and Medicare funding which would negatively affect current
and future budget developments. The current proposal, which Congress
sent to the President, could represent a loss of approximately $1.8
billion in funding to the State over the next seven years. For the
six-month period ended March 31, 1996, short-term municipal issuance
within the State increased to $170.4 million compared to $131.2
million from the previous six-month period.
CMA Connecticut Municipal Money Fund's average portfolio maturity
was maintained in the 40-day--50-day range for the six months ended
March 31, 1996. Several factors influenced our investment strategy
for the March period. First, the short-term interest rate yield
curve remained flat to slightly inverted for most of the six months,
making an aggressive extension of the Fund's average portfolio
maturity unattractive. Second, the Fund experienced net cash inflows
of approximately 20% of net assets since the beginning of the March
period. These inflows were predominately satisfied with purchases of
variable rate demand notes with maturities of seven days or less and
acted to dilute the Fund's average portfolio maturity. Finally, as
discussed earlier, recent economic data were stronger than expected,
casting some doubt about the future direction of interest rates and
justified a continued neutral average portfolio maturity. In the
upcoming months, we will continue to monitor the direction of the US
economy and the short-term municipal market.
<PAGE>
In Conclusion
We appreciate your continued interest in CMA Connecticut Municipal
Money Fund, and we look forward to serving your investment needs in
the future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent Giordano)
Vincent Giordano
Senior Vice President
(Steven T. Lewis)
Steven T. Lewis
Portfolio Manager
April 29, 1996
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
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1996 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Connecticut-- $15,500 Connecticut State Development Authority, Health Care Revenue Bonds
84.2% (Independent Living Project), VRDN, 3.30% due 7/01/2015 (a) $ 15,500
5,420 Connecticut State Development Authority, IDA (Sealectro Corporation Project),
3.80% due 12/01/1997 5,420
Connecticut State Development Authority, PCR, Refunding, VRDN (a):
4,900 (Connecticut Light & Power Co. Project), AMT, Series B, 3.45% due 9/01/2028 4,900
10,600 (Connecticut Light & Power Co. Project), Series A, 3.30% due 9/01/2028 10,600
10,800 (Western Massachusetts Electric Co.), Series A, 3.25% due 9/01/2028 10,800
6,000 Connecticut State Development Authority, Water Facility Revenue Bonds
(Bridgeport Hydraulic Co. Project), VRDN, AMT, 3.05% due 4/01/2035 (a) 6,000
Connecticut State Economic Recovery Notes:
1,000 Refunding, UT, 4.25% due 12/15/1996 1,005
3,000 Series A, 5.50% due 6/15/1996 (d) 3,013
8,100 VRDN, Series B, 3.50% due 6/01/1996 (a) 8,100
8,000 Connecticut State GO, Series B, 4.50% due 10/01/1996 8,026
Connecticut State Health and Educational Facilities Authority Revenue Bonds:
3,530 (Yale-New Haven Hospital), Series E, 4% due 6/01/1996 (b) 3,530
5,075 (Yale University), CP, Series L, 3.15% due 4/09/1996 5,075
5,300 (Yale University), CP, Series M, 3.15% due 4/09/1996 5,300
5,800 (Yale University), CP, Series N, 3.15% due 4/09/1996 5,800
1,950 (Yale University), CP, Series O, 3.15% due 4/09/1996 1,950
5,000 (Yale University), CP, Series P, 3.15% due 4/09/1996 5,000
Connecticut State HFA (Housing Mortgage Finance Project), AMT:
9,865 CP, Series D, 3.35% due 4/26/1996 9,865
8,090 CP, Series D, 3.30% due 5/01/1996 8,090
6,000 Sub-Series E-2, 3.85% due 6/10/1996 6,000
12,000 Connecticut State Municipal Electric Energy Cooperative Power Supply System
Revenue Bonds, CP, Series A, 3.05% due 5/01/1996 12,000
Connecticut State Special Assessment Unemployment Compensation, Advanced
Fund Revenue Bonds (Connecticut Unemployment):
14,800 Series C, 3.90% due 7/01/1996 (b) 14,800
47,000 VRDN, Series B, 3.60% due 11/01/2001 (a) 47,000
15,500 Connecticut State Special Tax Obligation Revenue Bonds (Transportation
Infrastructure), VRDN, Second Lien, Series 1, 2.70% due 12/01/2010 (a) 15,500
8,000 Eagle Tax Exempt Trust, VRDN, 3.47% due 8/15/2012 (a) 8,000
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1996 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Connecticut $10,000 East Haven, Connecticut, BAN, UT, 4.25% due 9/04/1996 $ 10,020
(concluded) 1,000 Enfield, Connecticut, UT, 5.25% due 5/15/1996 1,002
4,700 Meriden, Connecticut, BAN, UT, 3.25% due 8/14/1996 4,702
2,000 New Britain, Connecticut, BAN, 3.70% due 4/15/1996 2,000
1,150 Norwalk, Connecticut, Refunding, UT, Second Series, 3.625% due 1/15/1997 1,153
6,000 Stamford, Connecticut, BAN, UT, 3.25% due 10/15/1996 6,002
7,500 Stamford, Connecticut, Housing Authority Revenue Bonds (Morgan Street
Project), VRDN, AMT, 3.30% due 8/01/2024 (a) 7,500
1,550 Stonington, Connecticut, BAN, UT, 3.25% due 6/19/1996 1,551
1,735 Trumbull, Connecticut, BAN, UT, 3.25% due 6/05/1996 1,736
4,000 West Hartford, Connecticut, BAN, UT, 3.35% due 7/18/1996 4,001
3,000 Windsor Locks, Connecticut, BAN, 3.75% due 5/15/1996 (e) 3,001
Puerto Rico-- Puerto Rico Commonwealth, Government Development Bank Revenue Bonds, CP:
15.2% 6,500 3% due 4/09/1996 6,500
2,500 3.15% due 4/23/1996 2,500
6,000 3.25% due 4/25/1996 6,000
5,100 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Bonds, VRDN, Series X, 2.80% due 7/01/1999 (a) 5,100
10,500 Puerto Rico Housing Finance Corporation, Medical Revenue Bonds, 3.40% due
10/01/2011 (c) 10,500
Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities,
Financing Authority Revenue Bonds (Ana G. Mendez Educational Project), CP:
6,900 3.15% due 4/26/1996 6,900
4,000 3.20% due 5/01/1996 4,000
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Facilities Financing Authority, CP, Series A:
4,700 3.30% due 4/25/1996 4,700
1,500 3% due 5/01/1996 1,500
Total Investments (Cost--$311,642*)--99.4% 311,642
Other Assets Less Liabilities--0.6% 1,720
--------
Net Assets--100.0% $313,362
========
<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, 1996.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)Escrowed to Maturity.
(e)Bank Qualified.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1996
<S> <C> <C>
Assets:
Investments, at value (identified cost--$311,642,146) (Note 1a) $ 311,642,146
Cash 44,737
Receivables:
Interest $ 1,635,552
Securities sold 300,216 1,935,768
------------
Deferred organization expenses (Note 1d) 523
Prepaid registration fees and other assets (Note 1d) 31,608
------------
Total assets 313,654,782
------------
Liabilities:
Payables:
Investment adviser (Note 2) 122,685
Distributor (Note 2) 94,191
Dividends to shareholders (Note 1e) 34 216,910
------------
Accrued expenses and other liabilities 75,414
------------
Total liabilities 292,324
------------
Net Assets $313,362,458
============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares authorized $ 31,349,761
Paid-in capital in excess of par 282,147,848
Undistributed investment income--net 1,002
Accumulated realized capital losses--net (Note 4) (136,153)
------------
Net Assets--Equivalent to $1.00 per share based on 313,497,610 shares of beneficial
interest outstanding $313,362,458
============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1996
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 10,288,254
Expenses:
Investment advisory fees (Note 2) $ 1,393,151
Distribution fees (Note 2) 347,816
Registration fees (Note 1d) 51,630
Professional fees 49,964
Accounting services (Note 2) 49,754
Transfer agent fees (Note 2) 48,419
Custodian fees 25,689
Printing and shareholder reports 22,757
Amortization of organization expenses (Note 1d) 7,526
Pricing fees 6,022
Trustees' fees and expenses 3,042
Other 4,192
------------
Total expenses 2,009,962
------------
Investment income--net 8,278,292
Realized Loss on Investments--Net (Note 1c) (320)
------------
Net Increase in Net Assets Resulting from Operations $ 8,277,972
============
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: 1996 1995
<S> <C> <C>
Operations:
Investment income--net $ 8,278,292 $ 6,517,952
Realized loss on investments--net (320) (31,149)
------------- -------------
Net increase in net assets resulting from operations 8,277,972 6,486,803
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (8,275,678) (6,504,917)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (8,275,678) (6,504,917)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 1,135,984,616 944,440,136
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 8,277,928 6,504,738
------------- -------------
1,144,262,544 950,944,874
Cost of shares redeemed (1,091,300,656) (940,566,013)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 52,961,888 10,378,861
------------- -------------
Net Assets:
Total increase in net assets 52,964,182 10,360,747
Beginning of year 260,398,276 250,037,529
------------- -------------
End of year* $ 313,362,458 $ 260,398,276
============= =============
<FN>
*Undistributed investment income--net (Note 1f) $ 1,002 $ 9,081
============= =============
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: 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Investment income--net .03 .03 .02 .02 .03
-------- -------- -------- -------- --------
Total from investment operations .03 .03 .02 .02 .03
-------- -------- -------- -------- --------
Less dividends from investment income--net (.03) (.03) (.02) (.02) (.03)
-------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 3.02% 2.54% 1.77% 2.20% 3.56%*
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement .72% .71% .70% .63% .41%*
======== ======== ======== ======== ========
Expenses .72% .71% .70% .73% .81%*
======== ======== ======== ======== ========
Investment income--net 2.97% 2.53% 1.76% 2.17% 3.46%*
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $313,362 $260,398 $250,038 $231,431 $197,895
======== ======== ======== ======== ========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
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.
(e) Dividends and distributions 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.
<PAGE>
(f) Reclassification--Generally accepted accounting principles
require that certain components of net assets be classified to
reflect permanent differences between financial reporting and tax
purposes. Accordingly, current year's permanent book/tax differences
of $10,693 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.
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 the 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.
<PAGE>
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, MLPF&S, 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, 1996, the Fund had a net capital loss carryforward of
approximately $136,000, of which $69,000 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.
</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, 1996, 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 four-year period then ended and for 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, 1996 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.
<PAGE>
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, 1996, 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 30, 1996
</AUDIT-REPORT>
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 its taxable year ended March 31, 1996 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.
