CMA [Logo]
CMA CONNECTICUT
MUNICIPAL MONEY FUND [GRAPHIC OMITTED]
Annual Report
March 31, 2000
[LOGO] Merrill Lynch
<PAGE>
TO OUR SHAREHOLDERS:
For the year ended March 31, 2000, CMA Connecticut Municipal Money Fund paid
shareholders a net annualized yield of 2.66%.* As of March 31, 2000, the Fund's
7-day yield was 2.84%.
Economic Environment
During the six-month period ended March 31, 2000, US Treasury yields inverted
sharply as the spread between the two-year US Treasury note and the 30-year US
Treasury bond shifted from +43 basis points (0.43%) on October 1, 1999 to -30
basis points by March 31, 2000. Several factors contributed to this shift.
First, investors believed the long-term outlook for inflation improved when the
Federal Reserve Board aggressively raised short-term interest rates in an
attempt to slow the US economy. Since our last shareholder letter, the Federal
Reserve Board increased short-term interest rates by 75 basis points, ending the
six-month period with the Federal Funds target rate at 6.00%. The domestic
economy proved to be resilient, and we believe there is the possibility of
additional tightenings in the upcoming months. Second, large Federal Government
surpluses generated by the domestic economy drastically reduced the US
Government's reliance on debt issuance to fund expenditures, thereby reducing
supply. Lastly, the budget surplus also enabled the US Government to initiate an
extensive buyback of US Treasury debt that further lowered yields especially on
the long-end of the maturity curve.
Investment Strategy
We held a neutral investment strategy for the Fund through much of the six-month
period ended March 31, 2000 by maintaining an average portfolio maturity in the
45-day - 55-day range. Short-term municipal note yields moved higher during the
period as the Federal Reserve Board raised short-term interest rates. The yield
on one-year Connecticut municipal notes rose to the 4.05% area by period-end
from the 3.50% range at the beginning of October. We remained active in the note
market to maintain adequate diversification and continued to focus on issues
with shorter maturities in light of the current stance by the Federal Reserve
Board. Also, technical factors strongly influenced the variable rate sector
during the period. As 1999 year-end approached, Year 2000 and dealer inventory
concerns pushed variable rate yields to the 4.75% - 5.00% range by late
December. After January 1, 2000, variable rate yields quickly reversed as
sizable assets flowed into tax-exempt money market funds. These inflows moved
Connecticut variable rate yields to the 2.00% range by the middle of January.
We began the first quarter of 2000 with approximately 18% of the Fund's holdings
in the tax-exempt commercial paper sector. This sector allowed us to lock in
attractive yield levels for the Fund through March 2000 and helped to insulate
the Fund's yield as variable rate levels declined. The Fund experienced
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
<PAGE>
asset inflows during the second half of the period that increased assets by 22%
to $625 million by period-end. Finally, for the Fund's fiscal year ended March
31, 2000, our investment strategy focused on seeking to provide shareholders
with a portfolio of the highest credit quality, a stable net asset value and a
competitive yield. We achieved these goals, despite rapidly changing market
conditions, and provided shareholders with a yield better than the average for
all Connecticut tax-exempt money funds for the same period, as measured by IBC's
Money Fund Report.
In the coming months, we expect to continue to maintain our neutral portfolio
strategy for the Fund until it becomes clear that the Federal Reserve Board's
monetary policy will effectively slow the US economy. In the short-term
municipal market, late April and early May is historically a time of sizable
asset outflows because of Federal and state income tax payments. Similar to
year-end, these outflows are likely to move variable rate yields higher as
dealers attempt to minimize inventories. In addition, we expect an increase in
note issuance during the summer months as municipalities look to satisfy their
short-term financing needs for the upcoming year.
In Conclusion
We thank you for your continued support of CMA Connecticut Municipal Money Fund
and, we look forward to serving your investment needs in the months and years
ahead.
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
April 27, 2000
2
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CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
Connecticut-- $ 7,285 Bridgeport, Connecticut, GO, GAN, Series A, 4.50% due 2/01/2001 ............. $ 7,300
83.7% 10,815 Connecticut State Airport Revenue Bonds, FLOATS, Series A-60,
3.70% due 10/01/2004 (b)(d) ................................................. 10,815
24,355 Connecticut State Development Authority, Health Care Revenue Refunding
Bonds (Independent Living Project), VRDN, 3.75% due 7/01/2015 (d) ........... 24,355
Connecticut State Development Authority, IDR, VRDN (d):
1,135 (Accucut Inc. Project), AMT, 3.85% due 6/01/2018 ........................ 1,135
3,720 (Connecticut Spring and Stamping Corp.), AMT, 3.95% due 9/01/2008 ....... 3,720
4,000 (Handy & Harman Refining), 3.95% due 12/01/2017 ......................... 4,000
19,200 Connecticut State Development Authority, PCR (Connecticut Light and Power
Company Project), VRDN, AMT, Series A, 3.65% due 5/01/2031 (a)(d) ........... 19,200
Connecticut State Development Authority, PCR, Refunding (New England
Power Company), CP:
10,500 3.60% due 4/10/2000 ..................................................... 10,500
5,500 3.60% due 4/11/2000 ..................................................... 5,500
2,150 3.20% due 5/09/2000 ..................................................... 2,150
18,500 Connecticut State Development Authority Revenue Bonds (Solid Waste Project--
Rand-Whitney Container Board), VRDN, AMT, 3.35% due 8/01/2023 (d) ........... 18,500
9,450 Connecticut State, GO, VRDN, Series B, 3.60% due 5/15/2014 (d) .............. 9,450
7,300 Connecticut State, HFA, M/F Housing Revenue Bonds (Elm Haven), VRDN, AMT,
Series A, 3.70% due 12/01/2017 (d) .......................................... 7,300
Connecticut State, HFA, Revenue Bonds (Housing
Mortgage Finance Program):
21,400 CP, AMT, Series D, 3.70% due 4/11/2000 (g) .............................. 21,400
15,000 VRDN, Series G, 3.80% due 5/15/2018 (a)(d) .............................. 15,000
Connecticut State, HFA, Revenue Refunding Bonds (Housing Mortgage
Finance Program):
4,000 AMT, Series C-2, 3.90% due 9/05/2000 .................................... 4,000
8,200 VRDN, Sub-Series D-3, 3.30% due 11/15/2028 (a)(d) ....................... 8,200
</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
GAN Grant Anticipation Notes
GO General Obligation Bonds
HFA Housing Finance Agency
IDR Industrial Development Revenue Bonds
M/F Multi-Family
MSTR Municipal Securities Trust Receipts
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
UPDATES Unit Price Demand Adjustable Tax-Exempt Securities
VRDN Variable Rate Demand Notes
3
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CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONTINUED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
Connecticut Connecticut State Health and Educational Facilities Authority Revenue Bonds:
(concluded) $ 2,335 (Charlotte Hungerford), VRDN, Series C, 3.70% due 7/01/2013 (d) ......... $ 2,335
5,000 (Hospital of St. Raphael), VRDN, Series J, 3.30% due 7/01/2022 (d) ...... 5,000
2,600 (Hospital of St. Raphael), VRDN, Series K, 3.30% due 7/01/2022 (d) ...... 2,600
11,100 (Stamford Hospital), UPDATES, Series H, 3.30% due 7/01/2024 (d)(e) ...... 11,100
2,100 (Summerwood University Park), VRDN, Series A, 3.55% due 7/01/2030 (d) ... 2,100
3,100 (Yale University), CP, Series S, 3.60% due 4/05/2000 .................... 3,100
5,800 (Yale University), CP, Series S, 3.55% due 4/06/2000 .................... 5,800
7,500 (Yale University), CP, Series S, 3.90% due 6/01/2000 .................... 7,500
8,200 (Yale University), CP, Series S, 3.85% due 8/09/2000 .................... 8,200
19,350 (Yale University), VRDN, Series T-1, 3.60% due 7/01/2029 (d) ............ 19,350
16,100 (Yale University), VRDN, Series T-2, 3.60% due 7/01/2029 (d) ............ 16,100
23,755 (Yale University), VRDN, Series U, 3.65% due 7/01/2033 (d) .............. 23,755
60,790 (Yale University), VRDN, Series U-2, 3.65% due 7/01/2033 (d) ............ 60,790
3,495 (Yale--New Haven Hospital Issue), Series E, 3.20% due 6/01/2000 (b) ..... 3,495
6,000 (Yale--New Haven Hospital Issue), Series F, 7.10% due 7/01/2000 (e)(f) .. 6,167
11,500 Connecticut State Health and Educational Facilities Authority, Revenue
Refunding Bonds (Ascension Health Credit), VRDN, Series B, 3.10% due
11/15/2029 (d) .............................................................. 11,500
19,000 Connecticut State Special Assessment, Unemployment Compensation Advance
Fund Revenue Bonds (Connecticut Unemployment), Series C,
3.38% due 7/01/2000 (b) ..................................................... 19,000
40,015 Connecticut State Special Tax Obligation Revenue Bonds, Transportation
Infrastructure, VRDN, Second Lien, Series 1, 3.85% due 12/01/2010 (d) ....... 40,015
7,550 Connecticut State Special Tax Obligation Revenue Refunding Bonds,
Transportation Infrastructure, Series B, 4% due 10/01/2000 .................. 7,544
8,950 Eagle Tax-Exempt Trust, Connecticut, VRDN, Series 94-0701, Class A,
3.47% due 8/15/2012 (d) ..................................................... 8,950
7,031 East Hartford, Connecticut, GO, BAN, 4.25% due 1/18/2001 .................... 7,053
3,760 Guilford, Connecticut, GO, BAN, 3.75% due 8/15/2000 ......................... 3,764
4,600 Hartford, Connecticut, Redevelopment Agency, M/F Mortgage Revenue Refunding
Bonds (Underwood Tower Project), VRDN, 3.75% due 6/01/2020 (c)(d) ........... 4,600
3,310 New Britain, Connecticut, GO, BAN, 4.50% due 4/12/2001 ...................... 3,325
3,000 New Britain, Connecticut, GO, VRDN, 3.75% due 4/01/2013 (a)(d) .............. 3,000
6,895 New Britain, Connecticut, Refunding, GO, BAN, 3.15% due 4/12/2000 ........... 6,895
20,000 New Haven, Connecticut, GO, BAN, 4% due 7/12/2000 ........................... 20,021
2,000 Plainfield, Connecticut, TAN, 4.30% due 5/09/2000 ........................... 2,001
3,712 Regional School District Number 7, Connecticut, BAN, 4.50% due 9/14/2000 .... 3,720
6,000 Regional School District Number 16, Connecticut, BAN, 4% due 4/07/2000 ...... 6,001
1,800 Shelton, Connecticut, Housing Authority Revenue Bonds (Crosby Commons
Project), VRDN, 3.75% due 1/01/2031 (d) ..................................... 1,800
2,675 Stonington, Connecticut, BAN, 4.125% due 8/15/2000 .......................... 2,678
11,595 Trumbull, Connecticut, GO, BAN, 4.25% due 1/16/2001 ......................... 11,633
8,400 Wolcott, Connecticut, GO, BAN, 4% due 8/10/2000 ............................. 8,415
- ---------------------------------------------------------------------------------------------------------------------
Guam--1.1% 7,200 Guam Power Authority Revenue Bonds, CP, 3.75% due 6/13/2000 (a) ............. 7,200
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 2000 (CONCLUDED) (IN THOUSANDS)
<TABLE>
<CAPTION>
Face
State Amount Issue Value
- ---------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C>
Puerto Rico-- Eagle Tax-Exempt Trust, Puerto Rico Housing, VRDN (a)(d):
15.0% $ 7,505 Series 97C-5101, 3.50% due 10/01/2011 ................................... $ 7,505
10,395 Series 97C-5102, 3.50% due 10/01/2011 ................................... 10,395
14,800 Puerto Rico Commonwealth, FLOATS, Series A-1, 3.85% due 7/30/2000 (d) ....... 14,800
Puerto Rico Commonwealth, Government Development Bonds, CP:
7,225 3.25% due 4/05/2000 ..................................................... 7,225
8,000 3.55% due 4/12/2000 ..................................................... 8,000
6,000 3.35% due 4/13/2000 ..................................................... 6,000
4,200 2.95% due 4/18/2000 ..................................................... 4,200
5,600 Puerto Rico Commonwealth, Highway and Transportation Authority,
Transportation Revenue Refunding Bonds, VRDN, Series A,
3.25% due 7/01/2028 (a)(d) .................................................. 5,600
Puerto Rico Electric Power Authority, Power Revenue Bonds, MSTR,
VRDN (d)(e):
19,100 Series SGA-43, 3.45% due 7/01/2022 ...................................... 19,100
8,635 Series SGA 44, 3.45% due 7/01/2023 ...................................... 8,635
1,850 Puerto Rico Industrial, Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue Refunding Bonds (Reynolds Metals Company
Project), 3.50% due 9/01/2000 ............................................... 1,850
- ---------------------------------------------------------------------------------------------------------------------
Total Investments (Cost--$622,342)--99.8% ................................... 622,342
Other Assets Less Liabilities--0.2% ......................................... 1,149
--------
Net Assets--100.0% .......................................................... $623,491
========
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) AMBAC Insured.
(b) FGIC Insured.
(c) FSA Insured.
(d) The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at March 31,
2000.
(e) MBIA Insured.
(f) Prerefunded.
(g) FHA Insured.
See Notes to Financial Statements.
5
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 2000
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (identified cost--$622,341,790*) ....................... $ 622,341,790
Cash ......................................................................... 665,027
Interest receivable .......................................................... 4,276,555
Prepaid registration fees and other assets ................................... 48,002
--------------
Total assets ................................................................. 627,331,374
--------------
Liabilities:
Payables:
Securities purchased ....................................................... $ 3,324,498
Investment adviser ......................................................... 234,788
Distributor ................................................................ 179,744 3,739,030
--------------
Accrued expenses and other liabilities ....................................... 101,300
--------------
Total liabilities ............................................................ 3,840,330
--------------
Net Assets ................................................................... $ 623,491,044
==============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized ................................................................... $ 62,367,123
Paid-in capital in excess of par ............................................. 561,252,698
Accumulated realized capital losses--net ..................................... (128,777)
--------------
Net Assets--Equivalent to $1.00 per share based on 623,671,229 shares of
beneficial interest outstanding .............................................. $ 623,491,044
==============
</TABLE>
* Cost for Federal Income tax purposes was $622,342,097. As of March 31,
2000, net unrealized depreciation for Federal Income tax purposes amounted
to $307, all of which related to depreciated securities.
See Notes to Financial Statements.
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2000
<TABLE>
Investment Income:
<S> <C> <C>
Interest and amortization of premium and discount earned ..................... $ 16,819,188
Expenses:
Investment advisory fees ..................................................... $ 2,524,856
Distribution fees ............................................................ 632,217
Professional fees ............................................................ 61,828
Registration fees ............................................................ 54,018
Transfer agent fees .......................................................... 50,028
Custodian fees ............................................................... 36,504
Accounting services .......................................................... 32,583
Printing and shareholder reports ............................................. 23,532
Pricing fees ................................................................. 4,804
Trustees' fees and expenses .................................................. 2,873
Other ........................................................................ 5,763
--------------
Total expenses ............................................................... 3,429,006
--------------
Investment income--net ....................................................... 13,390,182
Realized Loss on Investments--Net ............................................ (20,250)
--------------
Net Increase in Net Assets Resulting from Operations ......................... $ 13,369,932
==============
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Year Ended March 31,
---------------------------------
Increase (Decrease) in Net Assets: 2000 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations:
Investment income--net ....................................................... $ 13,390,182 $ 11,535,806
Realized gain (loss) on investments--net ..................................... (20,250) 18,405
--------------- ---------------
Net increase in net assets resulting from operations ......................... 13,369,932 11,554,211
--------------- ---------------
Dividends to Shareholders:
Dividends to shareholders from investment income--net ........................ (13,390,182) (11,535,806)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares ............................................. 2,069,665,548 1,534,485,530
Net asset value of shares issued to shareholders in reinvestment of dividends 13,390,248 11,536,019
--------------- ---------------
2,083,055,796 1,546,021,549
Cost of shares redeemed ...................................................... (1,941,177,781) (1,517,701,482)
--------------- ---------------
Net increase in net assets derived from beneficial interest transactions ..... 141,878,015 28,320,067
--------------- ---------------
Net Assets:
Total increase in net assets ................................................. 141,857,765 28,338,472
Beginning of year ............................................................ 481,633,279 453,294,807
--------------- ---------------
End of year .................................................................. $ 623,491,044 $ 481,633,279
=============== ===============
</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: 2000 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------
<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 .................. 2.66% 2.62% 2.93% 2.81% 3.01%
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses ................................. .67% .70% .69% .71% .72%
======== ======== ======== ======== ========
Investment income--net ................... 2.63% 2.58% 2.88% 2.76% 2.97%
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of year (in thousands) ... $623,491 $481,633 $453,295 $339,931 $313,362
======== ======== ======== ======== ========
</TABLE>
+ Amount is less than $.01 per share.
See Notes to Financial Statements.
7
<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 Fund's financial statements are prepared in accordance
with accounting principles generally accepted in the United States of America,
which may require the use of management accruals and estimates. The following is
a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments -- Investments are valued at amortized cost, which
approximates market value. For the purpose of valuation, the maturity of a
variable rate demand instrument is deemed to be the next coupon date on which
the interest rate is to be adjusted. In the case of a floating rate instrument,
the remaining maturity is the demand notice payment period.
(b) Income taxes -- It is the Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no Federal income tax provision is required.
(c) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Interest income (including amortization of premium and discount) is recognized
on the accrual basis. Realized gains and losses on security transactions are
determined on the identified cost basis.
(d) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(e) Dividends and distributions to shareholders -- The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
back-up withholding tax withheld) in additional fund shares at net asset value.
Dividends are declared from the total of net investment income, excluding
discounts earned other than original issue discounts. Net realized capital
gains, if any, are normally distributed annually after deducting prior years'
loss carryforward. The Fund may distribute capital gains more frequently than
annually in order to maintain the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets, at the following
annual rates: .50% of the first $500 million of average daily net assets; .425%
of average daily net assets in excess of $500 million but not exceeding $1
billion; and .375% of average daily net assets in excess of $1 billion.
Pursuant to the Distribution and Shareholder Servicing Plan in compliance with
Rule 12b-1 under the Investment Company Act of 1940, Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") receives
8
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
a distribution fee from the Fund at the end of each month at the annual rate of
.125% of average daily net assets of the Fund. The distribution fee is to
compensate MLPF&S financial consultants and other directly involved branch
office personnel for selling shares of the Fund and for providing direct
personal services to shareholders. The distribution fee is not compensation for
the administrative and operational services rendered to the Fund by MLPF&S in
processing share orders and administering shareholder accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Shares of Beneficial Interest:
The number of shares sold, reinvested and redeemed during the years corresponds
to the amounts included in the Statements of Changes in Net Assets for net
proceeds from sale of shares, value of shares reinvested and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per share.
4. Capital Loss Carryforward:
At March 31, 2000, the Fund had a net capital loss carryforward of approximately
$129,000 of which $30,000 expires in 2001, $10,000 expires in 2002, $27,000
expires in 2003, $2,000 expires in 2005, $40,000 expires in 2006 and $20,000
expires in 2008. This amount will be available to offset like amounts of any
future taxable gains. Expired capital loss carryforward in the amount of $51,408
has been reclassified to paid-in capital in excess of par.
9
<PAGE>
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, 2000, the related statements
of operations for the year then ended and changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for each
of the years in the five-year period then ended. These financial statements and
the financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at March 31, 2000 by correspondence with the custodian and
broker. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of CMA Connecticut
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of March 31,
2000, the results of its operations, the changes in its net assets, and the
financial highlights for the respective stated periods in accordance with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
May 2, 2000
10
<PAGE>
CMA CONNECTICUT MUNICIPAL MONEY FUND
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, 2000 qualify as tax-exempt interest dividends for
Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund during the
year.
Please retain this information for your records.
CMA 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
William E. Zitelli--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CMA account, call (800) CMA-INFO [(800)
262-4636].
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--3/00
[RECYCLE LOGO] Printed on post-consumer recycled paper
