[LOGO] CMA(R)
CMA CONNECTICUT
MUNICIPAL MONEY FUND
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Annual Report
[GRAPHIC OMITTED]
March 31, 1999
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[LOGO] Merrill Lynch
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TO OUR SHAREHOLDERS:
For the year ended March 31, 1999, CMA Connecticut Municipal Money Fund paid
shareholders a net annualized yield of 2.62%.* As of March 31, 1999, the Fund's
7-day yield was 2.24%.
Economic Environment
Stronger US equity markets characterized the six-month period ended March 31,
1999 as continued US economic growth moved stock prices higher. The NASDAQ
Composite Index and the Dow Jones Industrial Average registered healthy gains of
45% and 25%, respectively. The Federal Reserve Board's decision to lower
short-term interest rates by an additional 50 basis points (0.50%) since
September 30, 1998 also encouraged equity investors. Conversely, US Treasury
prices weakened as investors shifted their focus from the instability abroad to
the domestic economy. A flatter US Treasury yield curve resulted with yields in
the two-year-ten-year maturity range rising sharply. Two-year, five-year and
ten-year maturity yields rose 82 basis points, 102 basis points and 94 basis
points, respectively, to end the period at 4.98%, 5.10% and 5.23%, respectively.
Investment Strategy
CMA Connecticut Municipal Money Fund closed the six-month period ended March 31,
1999 with a neutral average portfolio maturity of 40 days. The shape of the
short-term municipal yield curve favored a conservative average maturity since
the shorter-term variable rate sector performed well relative to longer-term
investment options, including municipal notes. In response to this, we largely
invested new assets and redeployed assets into variable rate issues. These
investments provided the Fund with solid credit quality and excellent liquidity
while limiting interest rate exposure. However, the municipal note market
remained under downward pressure as demand continued to outpace supply. For
example, a Connecticut municipal note with a one-year maturity ended the period
in the 2.95% yield range, which reflected a drop of 25 basis points in yield
since September 30, 1998. For the same period, the average 7-day variable rate
issue registered in the 3.05% yield range. Our investment strategy for the past
12 months provided shareholders with a portfolio of the highest credit quality,
a stable net asset value and competitive yield under challenging and quickly
changing market conditions.
In the near term, we expect short-term municipal yields to be strongly
influenced by three factors. First, investor concern continues to mount that the
Federal Reserve Board will raise short-term interest rates if the US economy
continues to grow at its current pace. The Federal Open Market Committee, which
determines short-term interest rate levels, will meet three times in the
upcoming six-month period and is likely to be closely monitored by the
investment community. Second, the summer months have historically been a time of
heavy municipal note issuance. We expect several large issuers, including the
states of California and Texas, to come to market during June, July and August.
However, in the past several years, issuance has steadily decreased as state and
local governments' borrowing needs have lessened in response to
higher-than-projected tax receipts. Finally, we
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
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anticipate that the commencement of the income tax payment period in April will
temporarily move short-term variable rate yields sharply higher. Heavy outflows
from money market funds generally occur as taxpayers remit their income tax
payments. These outflows cause dealers to raise short-term variable rate yields
in an effort to control inventories.
In Conclusion
We thank you for your continued interest in CMA Connecticut Municipal Money
Fund, and we look forward to serving your investment needs in the future.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Vincent R. Giordano
Vincent R. Giordano
Senior Vice President
/s/ Steven T. Lewis
Steven T. Lewis
Vice President and Portfolio Manager
May 12, 1999
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After more than 20 years of service, Arthur Zeikel recently retired as Chairman
of Merrill Lynch Asset Management, L.P. (MLAM). Mr. Zeikel served as President
of MLAM from 1977 to 1997 and as Chairman since December 1997. Mr. Zeikel is one
of the country's most respected leaders in asset management and presided over
the growth of Merrill Lynch's asset management business. During his tenure,
client assets under management grew from $300 million to over $500 billion. Mr.
Zeikel will remain on CMA Connecticut Municipal Money Fund's Board of Trustees.
We are pleased to announce that Terry K. Glenn has been elected President and
Trustee of the Fund. Mr. Glenn has held the position of Executive Vice President
of MLAM since 1983.
Mr. Zeikel's colleagues at MLAM join the Fund's Board of Trustees in wishing him
well in his retirement from Merrill Lynch and are pleased that he will continue
as a member of the Fund's Board of Trustees.
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2
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CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (IN THOUSANDS)
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<S> <C> <C> <C>
Connecticut-- $14,715 Bridgeport, Connecticut, GO, BAN, 3.50% due 1/08/2000 ......................... $ 14,743
82.5% 5,210 Connecticut State Airport Revenue Bonds, FLOATS, Series A-60,
2.75% due 10/01/2004 (e) ...................................................... 5,210
21,145 Connecticut State Development Authority, Health Care Revenue Refunding
Bonds (Independent Living Project), VRDN, 2.80% due 7/01/2015 (e) ............. 21,145
4,135 Connecticut State Development Authority, IDR (Connecticut Spring and
Stamping Corporation), VRDN, AMT, 3% due 9/01/2008 (e) ........................ 4,135
Connecticut State Development Authority, IDR, VRDN (e):
1,200 (Acucut Inc. Project), AMT, 2.90% due 6/01/2018 ............................ 1,200
4,000 (Handy & Harman Refining), 3% due 12/01/2017 ............................... 4,000
9,200 Connecticut State Development Authority Revenue Bonds (Solid Waste
Project--Rand Whitney), VRDN, AMT, 2.80% due 8/01/2023 (e) .................... 9,200
Connecticut State, GO, Tender Option Certificates, VRDN (e):
10,000 Series BTP-189, 3.20% due 5/01/2005 ........................................ 10,000
9,155 * Series BTP-294, 3.20% due 3/15/2007 ........................................ 9,155
11,850 Connecticut State, GO, VRDN, Series B, 2.80% due 5/15/2014 (e) ................ 11,850
7,300 Connecticut State, HFA, M/F Housing Revenue Bonds (Elm Haven),
VRDN, AMT, Series A, 3% due 12/01/2017 (e) .................................... 7,300
Connecticut State, HFA, Revenue Bonds (Housing Mortgage Finance Program):
4,500 CP, AMT, Series D, 2.85% due 4/08/1999 ..................................... 4,500
4,505 CP, AMT, Series D, 2.90% due 4/08/1999 ..................................... 4,505
4,500 CP, AMT, Series D, 2.65% due 5/03/1999 ..................................... 4,500
2,795 CP, AMT, Series D, 2.75% due 5/03/1999 ..................................... 2,795
6,325 CP, AMT, Series D, 2.95% due 5/06/1999 ..................................... 6,325
15,300 VRDN, Series G, 2.90% due 5/15/2018 (a)(e) ................................. 15,300
9,500 Connecticut State, HFA, Revenue Refunding Bonds (Housing Mortgage
Finance Program), VRDN, Sub-Series D3, 2.80% due 11/15/2028 (e) ............... 9,500
</TABLE>
Portfolio Abbreviations for CMA Connecticut Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
BAN Bond Anticipation Notes
CP Commercial Paper
FLOATS Floating Rate Securities
GO General Obligation Bonds
HFA Housing Finance Agency
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
VRDN Variable Rate Demand Notes
3
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CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face Value
State Amount Issue (Note 1a)
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<S> <C> <C> <C>
Connecticut Connecticut State Health and Educational Facilities Authority Revenue Bonds:
(concluded) $ 1,800 (Charlotte Hungerford), VRDN, Series C, 2.90% due 7/01/2013 (e) ............ $ 1,800
5,000 (Hospital of Saint Raphael), VRDN, Series J, 2.80% due 7/01/2022 (e) ....... 5,000
2,700 (Hospital of Saint Raphael), VRDN, Series K, 2.80% due 7/01/2022 (e) ....... 2,700
9,000 (Saint Vincents Medical Center), VRDN, Series B, 2.55% due 11/01/2028 (e) .. 9,000
3,815 (Yale--New Haven Hospital), VRDN, Series E, 3.70% due 6/01/1999 (c)(e) ..... 3,815
3,200 (Yale University), CP, Series S, 2.55% due 4/05/1999 ....................... 3,200
7,500 (Yale University), CP, Series S, 2.60% due 4/07/1999 ....................... 7,500
6,200 (Yale University), CP, Series S, 2.70% due 4/08/1999 ....................... 6,200
4,000 (Yale University), CP, Series S, 2.80% due 4/08/1999 ....................... 4,000
4,100 (Yale University), CP, Series S, 2.60% due 5/03/1999 ....................... 4,100
12,600 (Yale University), CP, Series S, 2.65% due 5/03/1999 ....................... 12,600
11,800 (Yale University), VRDN, Series T-1, 2.70% due 7/01/2029 (e) ............... 11,800
21,345 (Yale University), VRDN, Series T-2, 2.90% due 7/01/2029 (e) ............... 21,345
14,800 Connecticut State Municipal Electric Energy Cooperative, Power Supply
System Revenue Bonds, CP, Series A, 2.95% due 7/19/1999 ....................... 14,800
19,900 Connecticut State Special Assessment Unemployment Compensation
Revenue Bonds (Connecticut Unemployment), VRDN, Series C,
3.60% due 11/15/2001 (c)(e) ................................................... 19,900
8,000 Connecticut State Special Tax Obligation Revenue Bonds, Tender Option
Certificates, VRDN, Series BTP-262, 3% due 11/01/2005 (d)(e) .................. 8,000
35,015 Connecticut State Special Tax Obligation Revenue Bonds (Transportation
Infrastructure), VRDN, Second Lien, Series 1, 2.90% due 12/01/2010 (e) ........ 35,015
8,950 Eagle Tax-Exempt Trust, Connecticut, VRDN, Series 94, Class 0701,
2.95% due 8/15/2012 (e) ....................................................... 8,950
5,000 Enfield, Connecticut, GO, BAN, 3% due 4/15/1999 ............................... 5,000
4,600 Hartford Connecticut Redevelopment Agency, M/F Mortgage Revenue
Refunding Bonds (Underwood Tower Project), VRDN, 2.95% due
6/01/2020 (d)(e) .............................................................. 4,600
12,000 Meriden, Connecticut, BAN, 3% due 8/10/1999 ................................... 12,005
New Britain, Connecticut, GO, BAN:
13,675 3.70% due 4/13/1999 ........................................................ 13,676
2,995 4% due 4/13/1999 ........................................................... 2,995
520 New Britain, Connecticut, GO, Refunding, 4% due 4/01/1999 (a) ................. 520
3,500 New Fairfield, Connecticut, BAN, 3.25% due 8/02/1999 .......................... 3,504
1,250 Shelton, Connecticut, GO, BAN, 3.25% due 12/01/1999 ........................... 1,253
1,800 Shelton, Connecticut, Housing Authority Revenue Bonds (Crosby Commons
Project), VRDN, 2.90% due 1/01/2031 (e) ....................................... 1,800
Stamford, Connecticut, GO, BAN:
11,600 3.75% due 5/17/1999 ........................................................ 11,604
7,000 3.90% due 5/17/1999 ........................................................ 7,003
8,320 Wolcott, Connecticut, GO, BAN, 3.75% due 8/11/1999 ............................ 8,325
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Guam--2.2% Guam Power Authority, CP (a):
5,000 2.35% due 4/15/1999 ........................................................ 5,000
5,700 2.60% due 4/15/1999 ........................................................ 5,700
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</TABLE>
4
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CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1999 (CONCLUDED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face Value
Amount Issue (Note 1a)
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<S> <C> <C> <C>
Puerto Rico-- Eagle Tax-Exempt Trust, Puerto Rico, Housing, VRDN (e):
14.7% $ 7,505 Series 97C-5101, 3% due 10/01/2011 ......................................... $ 7,505
10,395 Series 97C-5102, 3% due 10/01/2011 ......................................... 10,395
Puerto Rico Commonwealth, Government Development Bank, CP:
10,000 2.95% due 4/08/1999 ........................................................ 10,000
5,000 2.85% due 4/15/1999 ........................................................ 5,000
600 Puerto Rico Commonwealth, Government Development Bank Revenue
Refunding Bonds, VRDN, 2.75% due 12/01/2015 (b)(e) ............................ 600
910 Puerto Rico Commonwealth, Highway and Transportation Authority, Highway
Revenue Refunding Bonds, Series X, 2.75% due 7/01/1999 ........................ 910
12,700 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, VRDN, Series A,
2.65% due 7/01/2028 (a)(e) .................................................... 12,700
Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR, VRDN (b)(e):
16,810 Series SGA-43, 2.75% due 7/01/2022 ......................................... 16,810
1,235 Series SGA-44, 2.75% due 7/01/2023 ......................................... 1,235
1,850 Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue Refunding Bonds (Reynolds Metals Company
Project), VRDN, 3.60% due 9/01/2013 (e) ....................................... 1,850
3,500 Puerto Rico Industrial, Tourist, Educational and Environmental Control
Facilities Financing Authority, Revenue Refunding Bonds (Ana G. Mendez
University System Project), VRDN, Series A, 2.95% due 1/01/2015 (e) ........... 3,500
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Total Investments (Cost--$478,578*)--99.4% .................................... 478,578
Other Assets Less Liabilities--0.6% ........................................... 3,055
--------
Net Assets--100.0% ............................................................ $481,633
========
</TABLE>
(a) AMBAC Insured.
(b) MBIA Insured.
(c) FGIC Insured.
(d) FSA Insured.
(e) The interest rate is subject to change periodically based on certain
indexes. The interest rate shown reflects the rate in effect at March 31,
1999.
* Cost for Federal income tax purposes.
See Notes to Financial Statements.
5
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CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1999
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$478,578,291) (Note 1a) .............................. $ 478,578,291
Cash ......................................................................................... 8,366
Interest receivable .......................................................................... 3,477,689
Prepaid registration fees and other assets (Note 1d) ......................................... 6,652
-------------
Total assets ................................................................................. 482,070,998
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Liabilities:
Payables:
Investment adviser (Note 2) ................................................................. $ 215,426
Distributor (Note 2) ........................................................................ 143,054 358,480
-------------
Accrued expenses and other liabilities ....................................................... 79,239
-------------
Total liabilities ............................................................................ 437,719
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Net Assets ................................................................................... $ 481,633,279
=============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of shares
authorized ................................................................................... $ 48,179,321
Paid-in capital in excess of par ............................................................. 433,613,893
Accumulated realized capital losses--net (Note 4) ............................................ (159,935)
-------------
Net Assets--Equivalent to $1.00 per share based on 481,793,214 shares of
beneficial interest outstanding .............................................................. $ 481,633,279
=============
</TABLE>
See Notes to Financial Statements.
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned ................................... $14,655,178
Expenses:
Investment advisory fees (Note 2) .......................................................... $ 2,234,172
Distribution fees (Note 2) ................................................................. 556,486
Accounting services (Note 2) ............................................................... 79,100
Professional fees .......................................................................... 65,214
Registration fees (Note 1d) ................................................................ 58,527
Transfer agent fees (Note 2) ............................................................... 52,342
Custodian fees ............................................................................. 38,763
Printing and shareholder reports ........................................................... 20,706
Pricing fees ............................................................................... 5,808
Trustees' fees and expenses ................................................................ 3,109
Other ...................................................................................... 5,145
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Total expenses ............................................................................. 3,119,372
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Investment income--net ..................................................................... 11,535,806
Realized Gain on Investments--Net (Note 1c) ................................................ 18,405
-----------
Net Increase in Net Assets Resulting from Operations ....................................... $11,554,211
===========
</TABLE>
See Notes to Financial Statements.
6
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CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Year Ended March 31,
-----------------------------------------
Increase (Decrease) in Net Assets: 1999 1998
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<S> <C> <C>
Operations:
Investment income--net ........................................................... $ 11,535,806 $ 10,526,142
Realized gain (loss) on investments--net ......................................... 18,405 (39,858)
--------------- ---------------
Net increase in net assets resulting from operations ............................. 11,554,211 10,486,284
--------------- ---------------
Dividends to Shareholders (Note 1e):
Investment income--net ........................................................... (11,535,806) (10,523,142)
--------------- ---------------
Net decrease in net assets resulting from dividends to shareholders .............. (11,535,806) (10,523,142)
--------------- ---------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares ................................................. 1,534,485,530 1,405,810,520
Net asset value of shares issued to shareholders in reinvestment of
dividends (Note 1e) .............................................................. 11,536,019 10,523,097
--------------- ---------------
1,546,021,549 1,416,333,617
Cost of shares redeemed .......................................................... (1,517,701,482) (1,302,932,701)
--------------- ---------------
Net increase in net assets derived from beneficial
interest transactions ............................................................ 28,320,067 113,400,916
--------------- ---------------
Net Assets:
Total increase in net assets ..................................................... 28,338,472 113,364,058
Beginning of year ................................................................ 453,294,807 339,930,749
--------------- ---------------
End of year ...................................................................... $ 481,633,279 $ 453,294,807
=============== ===============
</TABLE>
See Notes to Financial Statements.
CMA CONNECTICUT MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Year Ended March 31,
-------------------------------------------------------------
Increase (Decrease) in Net Asset Value: 1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Investment income--net ............................................ .03 .03 .03 .03 .03
Realized gain (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 ........................................... 2.62% 2.93% 2.81% 3.01% 2.54%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses .......................................................... .70% .69% .71% .72% .71%
======== ======== ======== ======== ========
Investment income--net ............................................ 2.58% 2.88% 2.76% 2.97% 2.53%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) ............................ $481,633 $453,295 $339,931 $313,362 $260,398
======== ======== ======== ======== ========
</TABLE>
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
7
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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 Fund's financial statements are prepared in accordance
with generally accepted accounting principles which may require the use of
management accruals and estimates. The following is a summary of significant
accounting policies followed by the Fund.
(a) Valuation of investments--Investments are valued at amortized cost, which
approximates market value. For the purpose of valuation, the maturity of a
variable rate demand instrument is deemed to be the next coupon date on which
the interest rate is to be adjusted. In the case of a floating rate instrument,
the remaining maturity is the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(c) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Interest income (including amortization of premium and discount) is recognized
on the accrual basis. Realized gains and losses on security transactions are
determined on the identified cost basis.
(d) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares are issued.
(e) Dividends and distributions to shareholders--The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
back-up withholding tax withheld) in additional fund shares at net asset value.
Dividends are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized capital
gains, if any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more frequently than
annually in order to maintain the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets, at the following
annual rates: 0.50% of the first $500 million of average daily net assets;
0.425% of average daily net assets in excess of $500 million but not exceeding
$1 billion; and 0.375% of average daily net assets in excess of $1 billion.
8
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CMA CONNECTICUT MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") receives a distribution fee from the Fund
at the end of each month at the annual rate of 0.125% of average daily net
assets of the Fund. The distribution fee is to compensate MLPF&S financial
consultants and other directly involved branch office personnel for selling
shares of the Fund and for providing direct personal services to shareholders.
The distribution fee is not compensation for the administrative and operational
services rendered to the Fund by MLPF&S in processing share orders and
administering shareholder accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares purchased and redeemed during the period corresponds to the
amounts included in the Statements of Changes in Net Assets for net proceeds
from sale of shares and cost of shares redeemed, respectively, since shares are
recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 1999, the Fund had a net capital loss carryforward of approximately
$160,000, of which $51,000 expires in 2000, $30,000 expires in 2001, $10,000
expires in 2002, $27,000 expires in 2003, $2,000 expires in 2005 and $40,000
expires in 2006. This amount will be available to offset like amounts of any
future taxable gains.
9
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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, 1999, the related statements
of operations for the year then ended and changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for each
of the years in the five-year period then ended. These financial statements and
the financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at March
31, 1999 by correspondence with the custodian. 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,
1999, the results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
May 10, 1999
10
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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, 1999 qualify as tax-exempt interest dividends for
Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund during the
year.
Please retain this information for your records.
CMA CONNECTICUT MUNICIPAL MONEY FUND
Officers and Trustees
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
Steven T. Lewis--Vice President
Darrin J. SanFillippo--Vice President
Kevin A. Schiatta--Vice President
Helen Marie Sheehan--Vice President
Donald C. Burke--Vice President and Treasurer
Robert Harris--Secretary
- --------------------------------------------------------------------------------
Gerald M. Richard, Treasurer of CMA Connecticut Municipal Money Fund has
recently retired. His colleagues at Merrill Lynch Asset Management, L.P. join
the Fund's Board of Trustees in wishing Mr. Richard well in his retirement.
- --------------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CMA account, call (800) CMA-INFO [(800)
262-4636].
11
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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 Connecticut
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 16055--3/99
[RECYCLE LOGO] Printed on post-consumer recycled paper
