CMA
CMA ARIZONA
MUNICIPAL MONEY FUND
Annual Report
March 31, 1995
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, MA 02101
<PAGE>
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
[FN]
*For inquiries regarding your CMA account,
call (800) CMA-INFO [(800) 262-4636].
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance, which will fluctuate. The Fund
seeks to maintain a consistent $1.00 net asset value per share,
although this cannot be assured. An investment in the Fund is
neither insured nor guaranteed by the US Government.
CMA Arizona
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011
TO OUR SHAREHOLDERS:
For the year ended March 31, 1995, CMA Arizona Municipal Money Fund
paid shareholders a net annualized yield of 2.83%*. As of March 31,
1995, the Fund's 7-day yield was 3.67%.
The Environment
During the six months ended March 31, 1995, the perception that the
US economy was overheating and inflationary pressures were
increasing gave way to a more benign economic outlook. With more
signs of slowing growth, investors now appear to be forecasting a
"soft landing" for the US economy. Although gross domestic product
(GDP) was reported to have increased at a revised 5.1% rate during
the final quarter of 1994, declines in other indicators such as new
home sales and durable goods orders registered thus far in 1995 have
led investors to anticipate that the economy is losing enough
momentum to keep inflation under control and preclude further
significant monetary policy tightening by the Federal Reserve Board.
<PAGE>
However, as US stock and bond markets have risen on more positive
economic news, the value of the US dollar reached new lows relative
to the yen and the Deutschemark. Persistent trade deficits and
exports of capital from the United States have kept the US currency
in a decade-long decline relative to the Japanese and German
currencies. Over the longer term, since the United States has the
highest productivity among industrialized nations and among the
lowest labor costs, demand for US dollar-denominated assets may
improve. However, a reduction of the still-widening US trade deficit
may be necessary before the US dollar appreciates substantially
relative to the yen and the Deutschemark.
[FN]
*Based on a constant investment throughout the period, with
dividends compounded daily, and reflecting a net return to the
investor after all expenses.
The first months of 1995 have been very positive for the stock and
bond markets. Continued signs of a moderating expansion and
well-contained inflationary pressures would provide further
assurance that the peak in interest rates is behind us. On the other
hand, indications of reaccelerating growth and further significant
monetary policy tightening by the Federal Reserve Board would be a
decided negative for the US financial markets.
Investment Outlook and Strategy
Interest rates on short-term securities finished the six-month
period ended March 31, 1995 higher than at the beginning of the
period. However, interest rates were volatile during the March
period. The restrictive monetary policy initiated by the Federal
Reserve Board in February 1994 was maintained during the six-month
period ended March 31, 1995. On November 15, 1994 the Federal
Reserve Board made its most aggressive move of the cycle by hiking
both the Federal Funds rate and the discount rate 75 basis points
(0.75%) to 5.50% and 4.75%, respectively. The Federal Reserve Board
followed this move with a 50 basis point increase on February 1,
1995, making it the seventh interest rate hike of the cycle and
doubling the Federal Funds rate to its current level of 6.00%. The
first half of the six-month period ended March 31, 1995 was one of
rising short-term interest rates as investors drove interest rates
up in anticipation of additional Federal Reserve Board tightening.
However, the larger-than-expected increase in the Federal Funds rate
in November 1994 led investors to believe that the Federal Reserve
Board would achieve the elusive soft landing of the US economy. This
set the stage for a rally in US financial markets which drove
interest rates sharply lower. For example, interest rates on six-
month US Treasury bills rose by nearly 110 basis points by the
beginning of December 1994 from their October 1, 1994 levels, only
to fall by approximately 50 basis points by March 31, 1995 for a net
increase of approximately 60 basis points.
<PAGE>
The strength of Arizona's revenue growth during 1994 produced a $229
million surplus in the general fund. Therefore, the State made its
first deposit, totaling $42 million, into the budget stabilization
fund while continuing to provide for all existing state-funded
programs. In addition, 1994 revenue projections are expected to
continue to show strength, with executive budget projections of a
5.9% increase in base revenues and a projected general fund ending
balance of $220 million. The December 1994 issue of the State
Revenue Report ranks Arizona sixth in terms of percentage gains in
state tax revenue during 1994 versus 1993. However, of the five
states ranked ahead of Arizona, only two can attribute their revenue
growth to booming economies rather than tax increases or reporting
changes.
Arizona continued its crusade to reduce the tax burden with a
recommended cut of $200 million in personal income tax relief in
fiscal 1996. In the upcoming months, the legislature will debate
both the nature of these cuts and the effect on both individuals and
businesses. Governor Symington favors an all-around income tax
reduction and ultimately eliminating the personal income tax.
Furthermore, the employment picture continues to remain positive for
1995 with expansions and new companies moving to the State.
Arizona's February unemployment rate was 5.3% compared to 5.4% at
the national level. The six-month period ended March 31, 1995 was
marked with continued volatility in the US Treasury market.
Consequently, we decreased the Fund's average portfolio maturity
from the 55-day range to the 25-day range by January 31, 1995. We
extended the average portfolio maturity to the 35-day range by March
31, 1995 because of the anticipated supply reduction in the
short-term tax-exempt market during the upcoming three months.
During the six-month period ended March 31, 1995, Arizona's
short-term issuance totaled $17.4 million, a considerable decrease
from the $525.2 million bought during the previous six-month period.
Diversification and credit quality remain important to the Fund, and
we will continue to closely monitor the marketplace.
In Conclusion
We thank you for your support of CMA Arizona 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
May 2, 1995
<PAGE>
Portfolio Abbreviations for CMA Arizona Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
DATES Daily Adjustable Tax-Exempt Securities
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
TAN Tax Anticipation Notes
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
CMA ARIZONA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Arizona-- $ 4,300 Apache County, Arizona, IDA, PCR (Tucson Electric Power Co.
97.0% Project), VRDN, Series B, 4.25% due 10/01/2021 (a) $ 4,300
Arizona Educational Loan Marketing Corp., Educational Loan Revenue
Bonds, VRDN, AMT, Series A (a):
3,700 4.15% due 3/01/2015 3,700
1,300 4.15% due 12/01/2020 1,300
Arizona Health Facilities Authority Revenue Bonds (Arizona Voluntary
Hospital Federation), VRDN (a):
1,460 Series A, 4.05% due 10/01/2015 1,460
1,245 Series B, 4.05% due 10/01/2015 1,245
1,500 Casa Grande, Arizona, IDA, Revenue Bonds (Mayville Project),
VRDN, 4.05% due 7/01/2015 (a) 1,500
4,000 Chandler, Arizona, IDA, M/F Housing Revenue Refunding Bonds
(Southpark Apartments Project), VRDN, 4.05% due 12/01/2002 (a) 4,000
3,300 Cochise County, Arizona, Pollution Control Corp., Solid Waste Disposal
Revenue Bonds (Arizona Electric Power Cooperative, Inc. Project), AMT,
4.45% due 9/01/1995 3,300
3,700 Coconino County, Arizona, Pollution Control Corp., Arizona Public Service
Revenue Bonds (Navajo Project), VRDN, Series A, 4.55% due 10/01/2029 (a) 3,700
500 Flagstaff, Arizona, IDA, IDR (W.L. Gore & Associates), CP, 4.30%
due 6/06/1995 500
2,000 Glendale, Arizona, IDA, Hospital Revenue Bonds (West Valley Camelback),
VRDN, 4.05% due 11/01/2011 (a) 2,000
<PAGE> 2,200 Glendale, Arizona, IDA, IDR (Superior Bedding Co. Project), VRDN, 4.30%
due 10/01/2014 (a) 2,200
Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds, VRDN, AMT (a):
3,700 (Privado Park Apartments Project), Series A, 4.35% due 6/01/2034 3,700
4,000 (Vista Ventana Apartments Project), Series D, 4.35% due 6/01/2034 4,000
200 Maricopa County, Arizona, IDA, PCR (Motorola Inc. Project), VRDN, 4.15%
due 10/01/1995 (a) 200
Maricopa County, Arizona, Pollution Control Corp., PCR, CP, Southern
California Edison (Palo Verde Project):
500 Series D, 4.10% due 4/05/1995 500
600 Series E, 4.10% due 4/12/1995 600
3,700 Maricopa County, Arizona, Pollution Control Corp., PCR (El Paso
Electric Co.-Palo Verde Project), VRDN, Series E, 4.95% due 12/01/2014 (a) 3,700
15,500 Maricopa County, Arizona, TAN, UT, 5% due 7/28/1995 15,525
</TABLE>
<TABLE>
CMA ARIZONA MUNICIPAL MONEY FUND
SCHEDULE OF INVESTMENTS AS OF MARCH 31, 1995 (IN THOUSANDS)
<CAPTION>
Face Value
State Amount Issue (Note 1a)
<S> <C> <S> <C>
Arizona Mesa, Arizona, Municipal Development Corp., Special Tax Obligations, CP:
(concluded) $ 2,500 4.15% due 4/25/1995 $ 2,500
2,000 3.80% due 5/10/1995 2,000
2,700 Mohave County, Arizona, IDA, IDR (Citizens Utilities), CP, AMT, 4.15%
due 5/01/1995 2,700
4,375 Phoenix, Arizona, IDA, M/F Housing Revenue Refunding Bonds (Lynwood
Apartments Project), VRDN, 4.25% due 10/01/2025 (a) 4,375
2,200 Phoenix, Arizona, UT, VRDN, Series 1, 4.25% due 6/01/2018 (a) 2,200
1,650 Pima County, Arizona, IDA, IDR, Refunding (Tucson Retirement Center),
VRDN, 4% due 1/01/2009 (a) 1,650
Pima County, Arizona, IDA, M/F Housing Revenue Bonds, VRDN, AMT (a):
5,200 (Quail Ridge Apartments), Series B, 4.35% due 6/01/2034 5,200
900 (Saguaro Crest Apartments), Series A, 4.35% due 6/01/2034 900
Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont Mining Corp.) (a):
1,800 DATES, 4.25% due 12/01/2009 1,800
2,300 VRDN, 4.25% due 12/01/2009 2,300
3,800 Salt River Project, Arizona, Agricultural Improvements and Power
Distribution, Electric System Revenue Bonds, CP, 4.10% due 4/03/1995 3,800
1,200 Special Fund of Industrial Community, Arizona, Tax-Exempt COP,
Refunding Bonds, CP, 4.15% due 5/17/1995 1,200
1,000 Tempe, Arizona, IDA, M/F Housing Revenue Bonds (Elliots Crossing),
VRDN, 4.05% due 10/01/2008 (a) 1,000
1,765 Tucson, Arizona, IDA, IDR, Refunding (Santa Rita Hotel), VRDN, AMT,
Series B, 4.45% due 12/01/2016 (a) 1,765
1,155 Tucson, Arizona, IDA, M/F Housing Revenue Refunding Bonds (Lincoln
<PAGE> Garden Project), VRDN, 4.10% due 2/01/2006 (a) 1,155
Yavapai County, Arizona, IDA, IDR (Citizens Utilities), CP, AMT:
1,500 4.25% due 4/05/1995 1,500
1,200 4.15% due 5/01/1995 1,200
1,900 3.95% due 5/05/1995 1,900
3,500 Yavapai County, Arizona, IDA, IDR, Refunding (Kachina Pointe
Project), VRDN, 4% due 1/01/2009 (a) 3,500
500 Yuma, Arizona, IDA, IDR (Ardco Inc. Project), VRDN, 4.30%
due 7/01/2003 (a) 500
Puerto Rico-- 300 Puerto Rico Commonwealth Government Development Bank, Revenue
0.3% Refunding Bonds, VRDN, 4.10% due 12/01/2015 (a) 300
Total Investments (Cost--$100,875*)-- 97.3% 100,875
Other Assets Less Liabilities--2.7% 2,842
--------
Net Assets--100.0% $103,717
========
<FN>
(a)The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the rate in effect at
March 31, 1995.
*Cost for Federal income tax purposes.
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA ARIZONA MUNICIPAL MONEY FUND
STATEMENT OF ASSETS AND LIABILITIES AS OF MARCH 31, 1995
<S> <C> <C>
Assets:
Investments, at value (identified cost--$100,874,722) (Note 1a) $ 100,874,722
Cash 152,519
Receivables:
Securities sold $ 1,906,754
Interest 864,205 2,770,959
-------------
Deferred organization expenses (Note 1d) 21,691
Prepaid registration fees and other assets (Note 1d) 2,155
-------------
Total assets 103,822,046
<PAGE> -------------
Liabilities:
Payables:
Distributor (Note 2) 28,947
Investment adviser (Note 2) 5,872 34,819
-------------
Accrued expenses and other liabilities 70,368
-------------
Total liabilities 105,187
-------------
Net Assets $ 103,716,859
=============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares
authorized $ 10,371,442
Paid-in capital in excess of par 93,342,983
Undistributed realized capital gains--net 2,434
-------------
Net Assets--Equivalent to $1.00 per share based on 103,714,424 shares of
beneficial interest outstanding $ 103,716,859
=============
See Notes to Financial Statements.
</TABLE>
<TABLE>
CMA ARIZONA MUNICIPAL MONEY FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1995
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium and discount earned $ 2,907,188
Expenses:
Investment advisory fees (Note 2) $ 430,110
Distribution fees (Note 2) 106,900
Professional fees 56,675
Registration fees (Note 1d) 37,065
Accounting services (Note 2) 34,475
Transfer agent fees (Note 2) 18,741
Printing and shareholder reports 15,542
Custodian fees 11,489
Amortization of organization expenses (Note 1d) 7,583
Pricing fees 6,041
Trustees' fees and expenses 1,019
Other 3,264
-------------
Total expenses before reimbursement 728,904
Reimbursement of expenses (Note 2) (267,373)
-------------
Total expenses after reimbursement 461,531
-------------
Investment income--net 2,445,657
Realized Gain on Investments--Net (Note 1c) 2,450
-------------
Net Increase in Net Assets Resulting from Operations $ 2,448,107
=============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA ARIZONA MUNICIPAL MONEY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended March 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <C> <C>
Operations:
Investment income--net $ 2,445,657 $ 1,017,503
Realized gain on investments--net 2,450 --
------------- -------------
Net increase in net assets resulting from operations 2,448,107 1,017,503
------------- -------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income--net (2,445,657) (1,017,503)
Realized gain on investments--net -- (330)
------------- -------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (2,445,657) (1,017,833)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 389,748,845 293,866,100
Net asset value of shares issued to shareholders in reinvestment of
dividends and distributions (Note 1e) 2,445,654 1,017,845
------------- -------------
392,194,499 294,883,945
Cost of shares redeemed (361,894,068) (262,907,118)
------------- -------------
Net increase in net assets derived from beneficial interest
transactions 30,300,431 31,976,827
------------- -------------
Net Assets:
Total increase in net assets 30,302,881 31,976,497
Beginning of year 73,413,978 41,437,481
------------- -------------
End of year $ 103,716,859 $ 73,413,978
============= =============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
CMA ARIZONA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
The following per share data and ratios have been derived
from information provided in the financial statements. For the Period
For the Year Ended March 31, Feb. 8, 1993++ to
Increase (Decrease) in Net Asset Value: 1995 1994 March 31, 1993
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
------------- ------------- -------------
Investment income--net .03 .02 .002
------------- ------------- -------------
Total from investment operations .03 .02 .002
------------- ------------- -------------
Less dividends from investment income--net (.03) (.02) (.002)
------------- ------------- -------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
============= ============= =============
Total Investment Return 2.83% 1.90% 1.78%*
============= ============= =============
Ratios to Average Net Assets:
Expenses, net of reimbursement and excluding
distribution fees .41% .47% .33%*
============= ============= =============
Expenses, net of reimbursement .54% .59% .46%*
============= ============= =============
Expenses .85% .98% 1.15%*
============= ============= =============
Investment income--net 2.84% 1.89% 1.86%*
============= ============= =============
Supplemental Data:
Net assets, end of period (in thousands) $ 103,717 $ 73,414 $ 41,437
============= ============= =============
<FN>
*Annualized.
++Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
<PAGE>
CMA ARIZONA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CMA Arizona Municipal Money Fund (the "Fund") is part of CMA
Multi-State Municipal Series Trust (the "Trust"). The Fund is
registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. The following
is a summary of significant accounting policies followed by the
Fund.
(a) Valuation of investments--Investments are valued at amortized
cost, which approximates market value. For the purpose of valuation,
the maturity of a variable rate demand instrument is deemed to be
the next coupon date on which the interest rate is to be adjusted.
In the case of a floating rate instrument, the remaining maturity is
the demand notice payment period.
(b) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
(c) Security transactions and investment
income--Security transactions are recorded on the dates the
transactions are entered into (the trade dates). Interest income
(including amortization of premium and discount) is recognized on
the accrual basis. Realized gains and losses on security
transactions are determined on the identified cost basis.
(d) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a
straight-line basis over a five-year period. Prepaid registration
fees are charged to expense as the related shares are issued.
(e) Dividends 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>
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM" or "Adviser"). The general partner of
FAM is Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co. ("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. For the year ended March 31, 1995, FAM earned fees of
$430,110, of which $267,373 was voluntarily waived.
The most restrictive annual expense limitation requires that the
Adviser reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed in any fiscal year 2.5%
of the Fund's first $30 million of average daily net assets, 2.0% of
the Fund's next $70 million of average daily net assets, and 1.5% of
the average daily net assets in excess thereof. No fee payment will
be made to the Adviser during any year which will cause such
expenses to exceed the pro rata expense limitation at the time of
such payment.
CMA ARIZONA MUNICIPAL MONEY FUND
NOTES TO FINANCIAL STATMENTS (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, PSI, 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.
<AUDIT-REPORT>
CMA ARIZONA MUNICIPAL MONEY FUND
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
CMA Arizona 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 Arizona
Municipal Money Fund of CMA Multi-State Municipal Series Trust as of
March 31, 1995, 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 two-year period then ended and for the period
February 8, 1993 (commencement of operations) to March 31, 1993.
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, 1995 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
<PAGE>
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
CMA Arizona Municipal Money Fund of CMA Multi-State Municipal Series
Trust as of March 31, 1995, 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 2, 1995
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (UNAUDITED)
All of the net investment income distributions paid daily by CMA
Arizona Municipal Money Fund of CMA Multi-State Municipal Series
Trust during the taxable year ended March 31, 1995 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, 1995.
Please retain this information for your records.
