CMA
CMA MICHIGAN
MUNICIPAL MONEY FUND
Annual Report
March 31, 1994
Merrill Lynch BULL LOGO
Officers and Trustees
Arthur Zeikel--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Terry K. Glenn--Executive Vice President
Vincent R. Giordano--Senior Vice President
Edward J. Andrews--Vice President
Donald C. Burke--Vice President
Peter J. Hayes--Vice President
Kenneth A. Jacob--Vice President
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, Massachusetts 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
<PAGE>
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 Michigan
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1994, CMA Michigan Municipal Money
Fund paid shareholders a net annualized yield of 1.81%*. As of
March 31, 1994, the Fund's 7-day yield was 1.67%.
The Environment
Inflationary expectations changed sharply during the March
quarter. Following better-than-expected economic results, Federal
Reserve Board Chairman Alan Greenspan indicated in Congressional
testimony in January that continued strong expansion of the
economy would lead the central bank to tighten monetary policy in
an effort to control inflation. On February 4, 1994, the central
bank broke with tradition and publicly announced a modest 25
basis point (0.25%) increase in short-term interest rates. At the
March 22 meeting of the Federal Open Market Committee, the
Federal Reserve Board again raised the Federal Funds rate by 25
basis points, and also announced the increase.
<PAGE>
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the
second increase in the Federal Funds rate was less of a surprise,
investors remained concerned that interest rates would trend
upward sharply. As a result, stock and bond prices continued to
decline through the end of March. The volatility in the US
capital markets was mirrored in international markets. Political
and economic developments, along with concerns of heightened
global inflationary pressures, led to a sell-off in most capital
markets, especially the emerging markets that had appreciated
strongly in 1993.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating
economy. At this time, there is little evidence that the rate of
inflation will increase rapidly. Therefore, although the secular
long-term trend toward lower interest rates may be over, it is
not yet certain whether the pace of economic activity will
accelerate to the point where significant Federal Reserve Board
tightening will be necessary to contain inflation.
Investment Outlook and Strategy
In March, in response to the State's improved financial condition
and a more balanced taxation system, Standard & Poor's Corp.
revised Michigan's rating outlook from negative to stable. The
"Big Three" automakers, which had their best year since 1979, are
expecting their growth to continue through 1994. This bodes well
for Michigan's employment picture, which reached record highs in
1993. According to the Michigan Employment Security Commission
(MESC), the State's jobless rate averaged 7.0% for 1993, which
was down nearly two points from 1992's rate of 8.8%. Addition-
ally, the mass restructuring by automakers, which led to plant
closings and layoffs in recent years, is expected to subside
during 1994.
<PAGE>
On March 15, 1994, Michigan voters approved a ballot proposal
that dramatically altered public school financing. This approval
will result in an increase of the State sales tax from 4% to 6%,
a reduced school property tax burden of 50%, a redistribution of
district-to-district expenditures per pupil across the State, and
a shifting of responsibility for school funding from local school
boards to state-elected officials. While there is no immediate
state credit impact, there are some long-term implications. Sales
tax, which will now account for 35% of school funding, tends to
be economically sensitive and therefore a variable source of
revenue. In good years, strong growth in sales tax receipts
should provide ample revenue for school funding. Conversely, in
the weak years of Michigan's cyclically sensitive economy,
revenues may decline and put pressure on other areas of the state
budget or on expenditures at the local school district level.
The new issuance of short-term Michigan debt totaled
approximately $206.9 million during the six-month period ended
March 31, 1994, a decrease from the $363.2 million in debt
brought to market during the previous six months. At the outset
of the March period, the Fund maintained a relatively aggressive
average portfolio maturity given the expected lack of short-term
issuance at the beginning of 1994. Subsequently, with the
expectation that the Federal Reserve Board would tighten monetary
policy, the Fund decreased its average portfolio maturity to take
advantage of anticipated higher interest rates during the second
half of the period. CMA Michigan Municipal Money Fund's average
portfolio maturity, which began the period in the 70-day range,
concluded in the 55-day range. Diversification and credit quality
remain paramount in importance to the Fund, and we will continue
to closely monitor the everchanging marketplace.
We thank you for your support of CMA Michigan Municipal Money
Fund, and we look forward to serving your investment needs in the
future.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President and Portfolio Manager
April 29, 1994
Portfolio Abbreviations for CMA Michigan Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
CP Commercial Paper
DDN Daily Demand Notes
GO General Obligation Bonds
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RAN Revenue Anticipation Notes
TRAN Tax Revenue Anticipation Notes
VRDN Variable Rate Demand Notes
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan-- Bruce Township, Michigan, Hospital Finance Authority, Health Care Revenue
92.9% Bonds (Sisters Charity--Saint Joseph's):
$1,525 Series B, 2.65% due 5/01/1994 $ 1,525
2,000 VRDN, Series A, 2.15% due 5/01/2018 (a) 2,000
4,000 Clinton Township, Michigan, Economic Development Corporation, Health Care
Revenue Bonds (Sisters Charity--Saint Joseph's), VRDN, 2.15% due 5/01/2013 (a) 4,000
Cornell Township, Michigan, Economic Development Corporation, IDR,
Refunding, CP:
2,000 2.65% due 7/14/1994 2,000
1,300 2.50% due 7/19/1994 1,300
Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Bonds:
200 CP, 2.60% due 12/01/2023 200
700 CP, Series A, 2.50% due 5/19/1994 700
300 DDN, Series F, 2.90% due 12/01/2013 (a) 300
2,100 Detroit, Michigan, Downtown Development Authority, Revenue Refunding Bonds
(Millender Center Project), VRDN, 2.40% due 12/01/2010 (a) 2,100
750 Detroit, Michigan, GO, 3% due 7/01/1994 751
8,000 Detroit, Michigan, Sewage Disposal Revenue Refunding Bonds, VRDN, Series A,
2.60% due 7/01/2005 (a) 8,000
5,000 Detroit, Michigan, Water Supply System, Revenue Bonds, VRDN, 2.50% due
7/01/2013 (a) 5,000
900 Dexter, Michigan, Economic Development Corporation, Limited Obligation
Revenue Bonds (Dexter Auto Product Company Project), VRDN, AMT, 2.55% due
6/01/2003 (a) 900
3,500 Grand Rapids, Michigan, Economic Development Corporation Revenue Bonds,
VRDN, 2.35% due 12/01/2006 (a) 3,500
7,500 Grand Rapids, Michigan, Water Supply System, Revenue Refunding Bonds, DDN,
3% due 1/01/2020 (a) 7,500
950 Jackson County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Bonds (Melling Tool Company Project), VRDN, AMT, 2.55%
due 12/01/2001 (a) 950
1,400 Melvindale, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (North American State Project), VRDN, 2.40% due
6/01/1998 (a) 1,400
1,600 Michigan Higher Education Facility Authority Revenue Bonds (Pooled Finance
Project), VRDN, 2.20% due 7/01/1995 (a) 1,600
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONTINUED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan Michigan Higher Education Student Loan Authority Revenue Bonds, AMT:
(continued) $ 3,300 Refunding, VRDN, Series X11-B, 2.35% due 10/01/2013 (a) $ 3,300
6,600 Refunding, VRDN, Series X11-D, 2.35% due 10/01/2015 (a) 6,600
1,200 Series X11-F, 2.35% due 10/01/2020 1,200
2,395 Michigan Municipal Bonds Authority, RAN, Series B-11, 3% due 5/05/1994 2,395
Michigan Municipal Bonds Authority Revenue Bonds:
4,000 Series A-1, 3% due 5/05/1994 4,001
1,850 Series B-12, 3% due 5/05/1994 1,850
1,000 Series B-14, 3% due 5/05/1994 1,000
7,000 Series B-17, 3% due 5/05/1994 7,002
1,990 Series B-23, 3% due 5/05/1994 1,990
Michigan State Building Authority Revenue Bonds:
6,000 2.80% due 10/01/1994 6,000
1,500 CP, Series I, 2.35% due 4/21/1994 1,500
Michigan State Hospital Finance Authority Revenue Bonds (Hospital Equipment
Loan Program), VRDN (a):
300 2.20% due 11/01/1999 300
3,500 2.20% due 6/01/2001 3,500
200 Michigan State Hospital Finance Authority Revenue Bonds (Mt. Clemens General
Hospital), DDN, 2.50% due 11/01/2012 (a) 200
8,300 Michigan State Hospital Finance Authority Revenue Bonds (Providence Hospital),
VRDN, Series 84, 2.30% due 11/01/2014 (a) 8,300
900 Michigan State Hospital Finance Authority Revenue Bonds (Providence
Hospital--Daughters of Charity Systems, Inc.), 2.30% due 11/01/2014 900
400 Michigan State Hospital Finance Authority Revenue Refunding Bonds (Mercy
Memorial Hospital), 2.40% due 6/01/1994 400
Michigan State Housing Development Authority, Limited Obligation Revenue
Bonds:
4,000 (Bloomfield), CP, 2.70% due 7/26/1994 4,000
4,000 (Laurel Valley), 2.25% due 12/01/2007 4,000
2,900 (Pine Ridge), VRDN, 2.25% due 10/01/2007 (a) 2,900
4,800 (Shoal Creek), VRDN, 2.25% due 10/01/2007 (a) 4,800
Michigan State Housing Development Authority, M/F Housing Revenue Bonds,
CP, AMT, Series A:
5,225 2.80% due 6/10/1994 5,225
16,690 2.75% due 6/13/1994 16,690
3,300 2.55% due 7/14/1994 3,300
Michigan State Housing Development Authority, Rental Housing Revenue
Refunding Bonds:
2,185 Series A, 2.50% due 4/01/1994 2,185
6,750 Series C, 3.10% due 2/28/1995 6,750
1,200 Michigan State Job Development Authority, Limited Obligation Revenue Bonds
(Andersons), 2.40% due 9/01/2025 1,200
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1994 (CONCLUDED) (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Michigan $ 3,500 Michigan State School Loan Notes, GO, 3.25% due 4/29/1994 $ 3,502
(concluded) 300 Michigan State Strategic Fund, Economic Development, Limited Obligation
Revenue Bonds (Yamaha Music), VRDN, AMT, 2.50% due 9/01/2008 (a) 300
2,000 Michigan State Strategic Fund, IDR (Norcer Manufacturing Project), VRDN,
2.15% due 12/01/2000 (a) 2,000
2,500 Michigan State Strategic Fund, Limited Obligation Revenue Bonds (Thorn Apple
Valley Incorporated Project), VRDN, AMT, 2.65% due 12/01/2005 (a) 2,500
5,000 Michigan State Strategic Fund, Limited Obligation, Revenue Refunding Bonds
(Consumers Power Company Project), 2.65% due 6/15/1994 5,000
6,500 Michigan State Strategic Fund, PCR (Consumer Power Project), DDN, Series A,
2.85% due 4/15/2018 (a) 6,500
11,000 Michigan State Strategic Fund, PCR (Dow Chemical Company), CP, AMT, 2.70%
due 6/07/1994 11,000
Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds, AMT,
VRDN (a):
600 (Genesee Power Station Project), 2.90% due 7/01/2033 600
9,500 (Grayling Generating Project), 2.45% due 1/01/2014 9,500
Michigan State Strategic Fund, Solid Waste Disposal Revenue Bonds (S.D.
Warren Company), CP, AMT:
5,000 Series A, 2.35% due 4/12/1994 5,000
3,500 Series A, 2.70% due 5/19/1994 3,500
1,100 Series B, 2.35% due 4/12/1994 1,100
6,000 Series B, 2.70% due 5/18/1994 6,000
10,050 Series C, 2.70% due 5/19/1994 10,050
600 Monroe County, Michigan, Economic Development Corporation, Limited
Obligation Revenue Refunding Bonds (Detroit, Edison), DDN, Series CC, 2.95%
due 10/01/2024 (a) 600
555 Monroe County, Michigan, Revenue Refunding Bonds (Frenchtown Resort
District), 2.75% due 5/01/1994 555
4,000 Port Huron, Michigan, Area School District State Aid Notes, 3.25% due 4/01/1994 4,000
2,695 University of Michigan, Revenue Bonds, VRDN, 2.30% due 4/01/2009 (a) 2,695
Puerto Rico-- 500 Commonwealth of Puerto Rico, Government Development Bank, Revenue
6.6% Refunding Bonds, 2% due 12/01/2015 500
10,000 Commonwealth of Puerto Rico, TRAN, Series A, 3% due 7/29/1994 10,010
5,100 Puerto Rico Maritime Shipping Authority, CP, 2.60% due 7/21/1994 5,100
Total Investments (Cost--$235,226*)--99.5% 235,226
Other Assets Less Liabilities--0.5% 1,209
--------
Net Assets--100.0% $236,435
========
<FN>
(a)The interest rate is subject to change periodically based on certain indexes.
The interest rates shown are the rates in effect at March 31, 1994.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1994
<S> <C> <C>
Assets:
Investments, at value (identified cost--$235,226,489) (Note 1a) $ 235,226,489
Cash 80,174
Interest receivable 1,321,811
Deferred organization expenses (Note 1d) 14,794
Prepaid registration fees and other assets (Note 1d) 1,208
-------------
Total assets 236,644,476
-------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 100,574
Distributor (Note 2) 40,841
Beneficial interest redeemed 24 141,439
------------
Accrued expenses and other liabilities 68,083
-------------
Total liabilities 209,522
-------------
Net Assets $ 236,434,954
=============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized $ 23,650,296
Paid-in capital in excess of par 212,852,669
Accumulated realized capital losses--net (Note 4) (68,011)
-------------
Net Assets--Equivalent to $1.00 per share based on 236,502,965 shares of beneficial
interest outstanding $ 236,434,954
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1994
<S> <C> <C>
Investment Income (Note lc):
Interest and amortization of premium and discount earned $ 5,362,707
Expenses:
Investment advisory fees (Note 2) $ 1,067,163
Distribution fees (Note 2) 265,504
Accounting services (Note 2) 51,218
Transfer agent fees (Note 2) 35,711
Registration fees (Note 1d) 33,008
Professional fees 27,756
Custodian fees 19,916
Printing and shareholder reports 17,998
Amortization of organization expenses (Note 1d) 7,124
Pricing fees 6,479
Trustees' fees and expenses 2,278
Other 1,730
------------
Total expenses 1,535,885
-------------
Investment income--net 3,826,822
Realized Loss on Investments--Net (Note lc) (7,009)
-------------
Net Increase in Net Assets Resulting from Operations $ 3,819,813
=============
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1994 1993
<S> <C> <C>
Operations:
Investment income--net $ 3,826,822 $ 4,179,380
Realized loss on investments--net (7,009) (31,202)
------------- -------------
Net increase in net assets resulting from operations 3,819,813 4,148,178
------------- -------------
Dividends to Shareholders (Note 1e):
Investment income--net (3,824,891) (4,174,802)
------------- -------------
Net decrease in net assets resulting from dividends to shareholders (3,824,891) (4,174,802)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 959,801,295 944,601,874
Net asset value of shares issued to shareholders in reinvestment of dividends
(Note 1e) 3,824,978 4,174,742
------------- -------------
963,626,273 948,776,616
Cost of shares redeemed (927,386,005) (942,983,166)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 36,240,268 5,793,450
------------- -------------
Net Assets:
Total increase in net assets 36,235,190 5,766,826
Beginning of year 200,199,764 194,432,938
------------- -------------
End of year $ 236,434,954 $ 200,199,764
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
<TABLE>
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: 1994 1993 1992
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
---------- ---------- ----------
Investment income--net .02 .02 .03
---------- ---------- ----------
Total from investment operations .02 .02 .03
---------- ---------- ----------
Less dividends:
Investment income--net (.02) (.02) (.03)
---------- ---------- ----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
========== ========== ==========
Total Investment Return 1.81% 2.24% 3.62%*
========== ========== ==========
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding distribution fees .60% .53% .42%*
========== ========== ==========
Expenses, net of reimbursement .72% .65% .54%*
========== ========== ==========
Expenses .72% .74% .80%*
========== ========== ==========
Investment income--net 1.79% 2.22% 3.53%*
========== ========== ==========
Supplemental Data:
Net assets, end of period (in thousands) $ 236,435 $ 200,200 $ 194,433
========== ========== ==========
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA MICHIGAN MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Michigan Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end investment management 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. 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 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) Reclassifications--Undistributed investment income--net, in
the amount of $11,663, has been reclassified to accumulated
realized capital losses--net.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
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 Fund's average daily net assets not
exceeding $500 million; 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.
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 Investment Adviser during any
year which will cause such expenses to exceed the pro rata
expense limitation at the time of such payment.
CMA MICHIGAN 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 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>
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, MLIM, 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, 1994, the Fund had a net capital loss carryforward
of approximately $68,000, of which $64,000 expires in 2001 and
$4,000 expires in 2002. These will be available to offset the
amounts of any future taxable gains.
<AUDIT-REPORT>
CMA MIGHIGAN MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Michigan 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
Michigan Municipal Money Fund of CMA Multi-State Municipal
Series Trust as of March 31, 1994, 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 the two-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.
<PAGE>
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 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, 1994 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 Michigan Municipal Money Fund of CMA
Multi-State Municipal Series Trust as of March 31, 1994, 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
Princeton, New Jersey
April 29, 1994
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Michigan Municipal Money Fund on CMA Multi-State Municipal Series
Trust during the taxable year ended March 31, 1994 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, 1994.
Please retain this information for your records.
