<PAGE> PAGE 1
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007 C010300 3
007 C020300 FRANKLIN WASHINGTON MUNICIPAL BOND FUND
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007 C010400 4
007 C020400 FRANKLIN TENNESSEE MUNICIPAL BOND FUND
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007 C010500 5
007 C020500 FRANKLIN ARKANSAS MUNICIPAL BOND FUND
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007 C010800 8
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008 D01AA01 SAN MATEO
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008 D04AA01 7777
011 A00AA01 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
<PAGE> PAGE 2
011 B00AA01 8-5889
011 C01AA01 SAN MATEO
011 C02AA01 CA
011 C03AA01 94403
011 C04AA01 7777
012 A00AA01 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
054 J00AA00 Y
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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055 A000400 N
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1996 SEMI-ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 01
<NAME> FRANKLIN HAWAII MUNICIPAL BOND FUND
<S> <C>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1996 SEMI-ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 03
<NAME> FRANKLIN WASHINGTON MUNICIPAL BOND FUND
<S> <C>
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<ACCUMULATED-NII-PRIOR> 36,979
<ACCUMULATED-GAINS-PRIOR> (124,542)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 24,697
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 37,935
<AVERAGE-NET-ASSETS> 7,882,487
<PER-SHARE-NAV-BEGIN> 9.800
<PER-SHARE-NII> 0.290
<PER-SHARE-GAIN-APPREC> 0.385
<PER-SHARE-DIVIDEND> (0.285)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.19
<EXPENSE-RATIO> 0.100
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1996 SEMI-ANNUAL AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 021
<NAME> FRANKLIN CALIFORNIA HIGH YIELD MUNICIPAL FUND-CLASS I
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 169,713,399
<INVESTMENTS-AT-VALUE> 175,818,367
<RECEIVABLES> 4,031,388
<ASSETS-OTHER> 182,900
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 180,032,655
<PAYABLE-FOR-SECURITIES> 3,307,448
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 308,549
<TOTAL-LIABILITIES> 3,615,997
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 172,648,014
<SHARES-COMMON-STOCK> 16,678,408
<SHARES-COMMON-PRIOR> 12,059,037
<ACCUMULATED-NII-CURRENT> (6,649)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,329,675)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,104,968
<NET-ASSETS> 176,416,658
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,892,469
<OTHER-INCOME> 0
<EXPENSES-NET> (262,297)
<NET-INVESTMENT-INCOME> 4,630,172
<REALIZED-GAINS-CURRENT> (284,917)
<APPREC-INCREASE-CURRENT> 6,063,145
<NET-CHANGE-FROM-OPS> 10,408,400
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,549,789)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,102,438
<NUMBER-OF-SHARES-REDEEMED> (1,643,816)
<SHARES-REINVESTED> 160,749
<NET-CHANGE-IN-ASSETS> 57,891,275
<ACCUMULATED-NII-PRIOR> 18,541
<ACCUMULATED-GAINS-PRIOR> (2,044,758)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 433,728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 560,109
<AVERAGE-NET-ASSETS> 148,017,147
<PER-SHARE-NAV-BEGIN> 9.810
<PER-SHARE-NII> .320
<PER-SHARE-GAIN-APPREC> .377
<PER-SHARE-DIVIDEND> (.317)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.190
<EXPENSE-RATIO> .340
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1996 SEMI-ANNUAL AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 022
<NAME> FRANKLIN CALIFORNIA HIGH YIELD MUNICIPAL FUND-CLASS II
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 169,713,399
<INVESTMENTS-AT-VALUE> 175,818,367
<RECEIVABLES> 4,031,388
<ASSETS-OTHER> 182,900
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 180,032,655
<PAYABLE-FOR-SECURITIES> 3,307,448
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 308,549
<TOTAL-LIABILITIES> 3,615,997
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 172,648,014
<SHARES-COMMON-STOCK> 642,251
<SHARES-COMMON-PRIOR> 21,617
<ACCUMULATED-NII-CURRENT> (6,649)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,329,675)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,104,968
<NET-ASSETS> 176,416,658
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,892,469
<OTHER-INCOME> 0
<EXPENSES-NET> (262,297)
<NET-INVESTMENT-INCOME> 4,630,172
<REALIZED-GAINS-CURRENT> (284,917)
<APPREC-INCREASE-CURRENT> 6,063,145
<NET-CHANGE-FROM-OPS> 10,408,400
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (105,573)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 624,082
<NUMBER-OF-SHARES-REDEEMED> (10,064)
<SHARES-REINVESTED> 6,616
<NET-CHANGE-IN-ASSETS> 57,891,275
<ACCUMULATED-NII-PRIOR> 18,541
<ACCUMULATED-GAINS-PRIOR> (2,044,758)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 433,728
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 560,109
<AVERAGE-NET-ASSETS> 148,017,147
<PER-SHARE-NAV-BEGIN> 9.820
<PER-SHARE-NII> .290
<PER-SHARE-GAIN-APPREC> .370
<PER-SHARE-DIVIDEND> (.290)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 10.190
<EXPENSE-RATIO> .890
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1996 SEMI-ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 04
<NAME> FRANKLIN TENNESSEE MUNICIPAL BOND FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 19,029,000
<INVESTMENTS-AT-VALUE> 19,837,166
<RECEIVABLES> 366,995
<ASSETS-OTHER> 76,735
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 20,280,896
<PAYABLE-FOR-SECURITIES> 1,515,469
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,639
<TOTAL-LIABILITIES> 1,559,108
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 17,946,157
<SHARES-COMMON-STOCK> 1,730,018
<SHARES-COMMON-PRIOR> 1,341,652
<ACCUMULATED-NII-CURRENT> 40,965
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (73,500)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 808,166
<NET-ASSETS> 18,721,788
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 491,543
<OTHER-INCOME> 0
<EXPENSES-NET> (32,935)
<NET-INVESTMENT-INCOME> 458,608
<REALIZED-GAINS-CURRENT> (8,220)
<APPREC-INCREASE-CURRENT> 685,432
<NET-CHANGE-FROM-OPS> 1,135,820
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (463,168)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 518,213
<NUMBER-OF-SHARES-REDEEMED> (157,504)
<SHARES-REINVESTED> 27,657
<NET-CHANGE-IN-ASSETS> 4,765,509
<ACCUMULATED-NII-PRIOR> 45,525
<ACCUMULATED-GAINS-PRIOR> (65,280)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 51,658
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 73,123
<AVERAGE-NET-ASSETS> 16,486,465
<PER-SHARE-NAV-BEGIN> 10.400
<PER-SHARE-NII> .290
<PER-SHARE-GAIN-APPREC> .428
<PER-SHARE-DIVIDEND> (.298)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.820
<EXPENSE-RATIO> .400
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN MUNICIPAL SECURITIES TRUST NOVEMBER 30, 1996 SEMI-ANNUAL REPORT
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 05
<NAME> FRANKLIN ARKANSAS MUNICIPAL BOND FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 9,409,773
<INVESTMENTS-AT-VALUE> 9,805,519
<RECEIVABLES> 297,564
<ASSETS-OTHER> 67,801
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 10,170,884
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 15,952
<TOTAL-LIABILITIES> 15,952
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,758,504
<SHARES-COMMON-STOCK> 957,717
<SHARES-COMMON-PRIOR> 799,979
<ACCUMULATED-NII-CURRENT> 42,956
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (42,274)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 395,746
<NET-ASSETS> 10,154,932
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 267,892
<OTHER-INCOME> 0
<EXPENSES-NET> (4,570)
<NET-INVESTMENT-INCOME> 263,322
<REALIZED-GAINS-CURRENT> (3,113)
<APPREC-INCREASE-CURRENT> 354,610
<NET-CHANGE-FROM-OPS> 614,819
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (257,255)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 169,883
<NUMBER-OF-SHARES-REDEEMED> (28,623)
<SHARES-REINVESTED> 16,478
<NET-CHANGE-IN-ASSETS> 1,989,385
<ACCUMULATED-NII-PRIOR> 36,889
<ACCUMULATED-GAINS-PRIOR> (39,161)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 28,811
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 46,603
<AVERAGE-NET-ASSETS> 9,101,235
<PER-SHARE-NAV-BEGIN> 10.210
<PER-SHARE-NII> 0.240
<PER-SHARE-GAIN-APPREC> 0.394
<PER-SHARE-DIVIDEND> (0.244)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 10.600
<EXPENSE-RATIO> 0.100
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
