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CMA ARIZONA
MUNICIPAL MONEY FUND
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Annual Report
March 31, 1997
[MERRILL LYNCH 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
Stephen T. Lewis -- Vice President
Darrin J. SanFillippo -- 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 351
Boston, MA 02101
Transfer Agent
Merrill Lynch 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].
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. Statements and other information herein are as dated
and are subject to change.
CMA Arizona
Municipal Money Fund
Box 9011
Princeton, NJ 08543-9011 #16714 -- 3/97
[RECYCLE LOGO] Printed on post-consumer recycled paper
TO OUR SHAREHOLDERS:
For the year ended March 31, 1997, CMA Arizona Municipal Money Fund paid
shareholders a net annualized yield of 2.84%*. As of March 31, 1997, the
Fund's 7-day yield was 2.78%.
The Environment
Stock and bond market turbulence increased during the six-month period
ended March 31, 1997. Mounting evidence of stronger-than-expected
economic growth suggested to investors that the Federal Reserve Board
would make a preemptive strike to contain inflationary pressures. These
concerns were heightened by statements made by Federal Reserve Board
Chairman Alan Greenspan, and culminated in an announced increase in the
Federal Funds rate of 0.25% to 5.5% on March 25. As investors became
concerned that this might prove to be only the first in a series of
monetary policy tightening moves, interest rates rose and stock and bond
prices declined. Following the central bank's action, investor sentiment
fluctuated from negative to more positive, depending upon whether the
latest economic data releases were perceived to suggest an overheating
or moderating trend. It appears that clear-cut signs of continued low
inflation and moderate economic growth, as well as no further
indications of monetary policy tightening, are needed before stability
returns to the financial markets.
Investment Outlook and Strategy
A backdrop of low unemployment and high consumer confidence continued to
provide favorable conditions for the state of Arizona's economy during
the six-month period ended March 31, 1997. Additionally, although the
state's retailers enjoyed a respectable holiday season, the boom in
retail spending appears to have ended, with sales up only 5.8% for the
first nine months of 1996, compared to growth of 9.4%, 12.3% and 9.2% in
1993, 1994 and 1995, respectively, for the same nine-month period. As
1997 begins, there are several factors that we believe may have positive
implications for the state's economy. The economy of neighboring
California continues to do well, creating over 30,000 new manufacturing
jobs over the last year. Also, according to the Western Blue Chip
Economic Forecast, employment in California, which was up 2.6% in 1996,
is expected to increase by 2.3% in 1997. Consequently, since California
is Arizona's largest domestic trading partner, a stronger California
economy is a positive factor for Arizona's continued success. The
greater Phoenix area continues to be the strongest performer within the
state. This area currently accounts for more than two-thirds of
employment in Arizona, making it the major center of growth for the
state as a whole. Since 1992, the Phoenix metropolitan area created
almost 265,000 jobs. Furthermore, employment climbed 6.4% in 1995 and
another 5% for 1996, making the greater Phoenix area the fastest growing
major job market in the country.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after
all expenses.
During the six-month period ended March 31, 1997, economic statistics
continued to paint an ideal picture of the US economy. For a majority of
the period, a combination of steady growth and low inflation kept
Federal Reserve Board policymakers on hold. For example, despite strong
holiday sales spurred by healthy increases in personal income, the
consensus remained that monetary policy would be on hold for the near
term. However, during most of this period, a lack of fixed-rate supply
combined with traditional inflows during early December 1996 and January
1997 kept yields on fixed-rate notes relatively unattractive compared to
those on variable rate demand notes. Both the flat short-term tax-exempt
yield curve and a bias for tighter monetary policy caused us to use the
Fund's commercial paper to maintain a relatively neutral average
portfolio maturity while selectively purchasing fixed-rate notes when
yields were attractive. With similar conditions existing during the six-
month period ended September 30, 1996, the Fund utilized a similar
market strategy. Furthermore, the purchase of fixed-rate notes at
attractive levels during July 1996 and August 1996 enhanced the Fund's
performance for the recent fiscal year.
As the six-month period ended March 31, 1997 concluded, continued
strength in a majority of economic statistics revealed the potential for
impressive growth during the first quarter of the year. Therefore, with
the probability of an interest rate hike increasing and the expected
rise in yields on variable rate products in April because of outflows
during tax time, we decided to position the Fund more defensively. In
October 1996, the average portfolio maturity was in the 55-day range,
but by the end of March, the average portfolio maturity was in the 30-
day range. On March 25, 1997, the Federal Reserve Board increased the
Federal Funds rate by 25 basis points (0.25%) to 5.5%. During the six-
month period ended March 31, 1997, the state of Arizona's short-term
issuance totaled $29.6 million. Diversification and credit quality
remain paramount to the Fund, and we will continue to closely monitor
the everchanging 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,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/VINCENT R. GIORDANO
Vincent R. Giordano
Senior Vice President
/S/DARRIN J. SANFILLIPPO
Darrin J. SanFillippo
Vice President and Portfolio Manager
April 29, 1997
<TABLE>
<CAPTION>
CMA Arizona Municipal Money Fund
Schedule Of Investments As Of March 31, 1997 (in Thousands)
Face Value
State Amount Issue (Note 1a)
<S> <C> <C> <C>
Arizona -- $ 5,400 Arizona Educational Loan Marketing Corp., Educational Loan Revenue Bonds,
91.1% VRDN, AMT, Series A, 3.55% due 3/01/2015 (a)(c) $ 5,400
2,400 Arizona Health Facilities Authority, Hospital Systems Revenue Bonds (Northern
Arizona Healthcare), VRDN, AMT, Series B, 3.45% due 10/01/2026 (a)(c) 2,400
290 Arizona Health Facilities Authority Revenue Bonds (Arizona Voluntary Hospital
Federation), VRDN, Series B, 3.45% due 10/01/2015 (a)(d) 290
2,285 Arizona State Transportation Board, Excise Tax Revenue Refunding Bonds
(Maricopa County Regional Area), Series A, 4% due 7/01/1997 (b) 2,287
1,100 Arizona State Transportation Board, Highway Revenue Bonds, 7.80% due
7/01/1997 1,110
3,900 Cochise County, Arizona, Pollution Control Corp., Solid Waste Disposal Revenue
Bonds (Arizona Electric Power Cooperative, Inc. Project), AMT, 3.50% due
9/02/1997 3,900
Coconino County, Arizona, Pollution Control Corp., Arizona Public Service
Revenue Bonds, VRDN, AMT, Series A (a):
6,710 3.80% due 10/01/2031 6,710
11,000 (Navajo Project), 3.80% due 10/01/2029 11,000
1,400 Coconino County, Arizona, Unified School District No. 001 (Flagstaff), TAN,
Series A, 4.40% due 7/31/1997 1,402
Maricopa County, Arizona, IDA, M/F Housing Revenue Bonds, VRDN, AMT (a):
6,200 (Privado Park Apartments Project), Series A, 3.55% due 12/15/2033 6,200
5,200 (Vista Ventana Apartments Project), Series D, 3.55% due 12/15/2033 5,200
Maricopa County, Arizona, Pollution Control Corp., PCR, CP (Southern California
Edison - Palo Verde Project):
3,300 Series C, 3.50% due 4/01/1997 3,300
1,500 Series G, 3.25% due 4/03/1997 1,500
Maricopa County, Arizona, Pollution Control Corp., PCR, Refunding (Arizona
Public Service Co.), VRDN (a):
1,000 Series B, 3.65% due 5/01/2029 1,000
200 Series C, 3.85% due 5/01/2029 200
12,000 Maricopa County, Arizona, Pollution Control Corp., PCR, Refunding (El Paso
Electric), VRDN, Series A, 3.60% due 8/01/2015 (a) 12,000
Maricopa County, Arizona, School District:
1,000 No. 005 (Issac Elementary), TAN, Series A, 4.25% due 7/31/1997 1,001
4,300 No. 006 (Washington Elementary), UT, Series A, 7% due 7/01/1997 (b) 4,332
Maricopa County, Arizona, Unified School District, TAN:
2,000 No. 11 (Peoria), UT, Series C, 4.35% due 7/30/1997 2,005
4,300 No. 41 (Gilbert), Series A, 4.45% due 7/31/1997 4,306
5,500 No. 97 (Deer Valley), Series A, 4.45% due 7/31/1997 5,507
2,000 Mesa, Arizona, Municipal Development Corp., Special Tax, CP, 3.50%
due 6/10/1997 2,000
Mohave County, Arizona, IDA, IDR (Citizens Utilities), CP, AMT:
5,400 3.50% due 4/17/1997 5,400
1,000 3.60% due 5/09/1997 1,000
4,500 3.40% due 5/15/1997 4,500
5,000 Phoenix, Arizona, IDA, IDR (Laich Industries Corp. Project), VRDN, AMT,
3.65% due 9/01/2016 (a) 5,000
6,000 Phoenix, Arizona, IDA, M/F Housing Revenue Bonds (Mariners Poinnte
Apartments Project), VRDN, AMT, Series A, 3.65% due 10/01/2023 (a) 6,000
Phoenix, Arizona, IDA, M/F Housing Revenue Bonds, VRDN (a):
4,000 Refunding (Paradise Lakes Apartments Project), 3.60% due 7/01/2025 4,000
6,070 (Sunset Ranch), 3.50% due 12/01/2027 6,070
1,400 Phoenix, Arizona, UT, VRDN, Series 95-2, 3.70% due 6/01/2020 (a) 1,400
1,650 Pima County, Arizona, IDA, Industrial Revenue Refunding Bonds (Tucson
Retirement Center), VRDN, 3.30% due 1/01/2009 (a) 1,650
Pima County, Arizona, IDA, M/F Housing Revenue Bonds, VRDN (a):
1,000 (Quail Ridge Apartments), AMT, Series B, 3.55% due 12/15/2033 1,000
5,000 Refunding (La Cholla Apartments Project), 3.45% due 12/01/2025 5,000
6,500 Pima County, Arizona, IDA, Revenue Refunding Bonds (Guaranteed Mortgage
Obligation), VRDN, AMT, Series A, 3.75% due 6/30/2021 (a) 6,500
7,300 Pinal County, Arizona, IDA, Hospital Revenue Bonds (Casa Grande Regional
Medical Center), VRDN, 3.60% due 12/01/2022 (a) 7,300
1,800 Pinal County, Arizona, IDA, PCR (Magma Copper/Newmont Mining Corporation),
VRDN, 3.65% due 12/01/2009 (a) 1,800
1,400 Salt River Project, Arizona, Agricultural Improvement and Power Distribution,
Electric System Revenue Bonds (Promissary Notes), CP, 3.10% due 4/01/1997 1,400
Special Fund of Industrial Community, Arizona, Tax-Exempt COP, Refunding,
CP (d):
1,200 3.25% due 4/03/1997 1,200
2,700 3.50% due 6/12/1997 2,700
1,000 Tempe, Arizona, IDA, M/F Revenue Bonds (Elliots Crossing), VRDN, 3.45%
due 10/01/2008 (a) 1,000
1,000 Tempe, Arizona, Unified High School District No. 213, Refunding, 4.20%
due 7/01/1997 (d) 1,001
3,100 Yavapai County, Arizona, IDA, IDR (Citizen Utilities), CP, AMT, 3.50% due
4/17/1997 3,100
500 Yuma, Arizona, IDA, IDR (Ardco Inc. Project), VRDN, 3.65% due 7/01/2003 (a) 500
3,840 Yuma, Arizona, IDA, M/F Housing Revenue Bonds (El Encanto Apartments),
VRDN, Series A, 3.35% due 11/01/2008 (a) 3,840
Puerto Rico -- 12,500 Puerto Rico Commonwealth, Government Development Bank, CP, 3.15% due
8.4% 4/08/1997 12,500
1,750 Puerto Rico Industrial, Medical and Environmental Pollution Control Facility
Revenue Bonds (Key Pharmaceuticals), Series A, 3.75% due 12/01/1997 1,752
Total Investments (Cost -- $168,663*) -- 99.5% 168,663
Other Assets Less Liabilities --0.5% 888
--------
Net Assets --100.0% $169,551
========
(a) The interest rate is subject to change periodically based on
certain indexes. The interest rate shown is the interest rate
in effect at March 31, 1997.
(b) AMBAC Insured.
(c) MBIA Insured
(d) FGIC Insured.
* Cost for Federal income tax purposes.
Portfolio Abbreviations for CMA Arizona Municipal Money Fund
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
CP Commercial Paper
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
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Arizona Municipal Money Fund
Statement of Assets and Liabilities as of March 31, 1997
<S> <C> <C>
Assets:
Investments, at value (identified cost -- $168,662,570) (Note 1a) $ 168,662,570
Cash 15,673
Interest receivable 1,033,177
Deferred organization expenses (Note 1d) 6,503
Prepaid registration fees and other assets (Note 1d) 10,430
--------------
Total assets 169,728,353
--------------
Liabilities:
Payables:
Investment adviser (Note 2) $ 73,342
Distributor (Note 2) 47,640 120,982
------------
Accrued expenses and other liabilities 56,434
--------------
Total liabilities 177,416
--------------
Net Assets $ 169,550,937
==============
Net Assets Consist of:
Shares of beneficial interest, $0.10 par value, unlimited number of
shares authorized $ 16,958,726
Paid-in capital in excess of par 152,628,464
Accumulated realized capital losses -- net (Note 4) (36,253)
--------------
Net Assets -- Equivalent to $1.00 per share based on 169,587,255
shares of beneficial interest outstanding $ 169,550,937
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Arizona Municipal Money Fund
Statement of Operations for the Year Ended March 31, 1997
<S> <C> <C>
Investment Income (Note 1c):
Interest and amortization of premium earned $ 5,366,356
Expenses:
Investment advisory fees (Note 2) $ 752,072
Distribution fees (Note 2) 185,231
Accounting services (Note 2) 50,699
Registration fees (Note 1d) 48,804
Professional fees 46,117
Transfer agent fees (Note 2) 22,921
Custodian fees 15,895
Printing and shareholder reports 14,493
Amortization of organization expenses (Note 1d) 7,583
Pricing fees 3,044
Trustees' fees and expenses 1,352
Other 2,524
------------
Total expenses 1,150,735
-------------
Investment income -- net 4,215,621
Realized Loss on Investments -- Net (Note 1c) (29,558)
-------------
Net Increase in Net Assets Resulting from Operations $ 4,186,063
==============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Arizona Municipal Money Fund
Statements of Changes in Net Assets
For the Year Ended
March 31,
Increase (Decrease) in Net Assets: 1997 1996
<S> <C> <C>
Operations:
Investment income -- net $ 4,215,621 $ 4,017,445
Realized loss on investments -- net (29,558) (6,694)
------------- -------------
Net increase in net assets resulting from operations 4,186,063 4,010,751
------------- -------------
Dividends & Distributions to Shareholders (Note 1e):
Investment income -- net (4,215,621) (4,017,445)
Realized gain on investments -- net -- (2,500)
------------- -------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (4,215,621) (4,019,945)
------------- -------------
Beneficial Interest Transactions (Note 3):
Net proceeds from sale of shares 811,252,304 527,733,700
Net asset value of shares issued to shareholders in reinvestment of dividends
and distributions (Note 1e) 4,215,615 4,019,977
------------- -------------
815,467,919 531,753,677
Cost of shares redeemed (783,407,673) (497,941,093)
------------- -------------
Net increase in net assets derived from beneficial interest transactions 32,060,246 33,812,584
------------- -------------
Net Assets:
Total increase in net assets 32,030,688 33,803,390
Beginning of year 137,520,249 103,716,859
------------- -------------
End of year $ 169,550,937 $ 137,520,249
============= =============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CMA Arizona Municipal Money Fund
Financial Highlights
For the
Period
The following per share data and ratios have been derived Feb. 8,
from information provided in the financial statements. 1993+ to
For the Year Ended March 31, March 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Investment income -- net .03 .03 .03 .02 .002
-------- -------- -------- -------- --------
Total from investment operations .03 .03 .03 .02 .002
-------- -------- -------- -------- --------
Less dividends from investment income -- net (.03) (.03) (.03) (.02) (.002)
-------- -------- -------- -------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Investment Return 2.84% 3.36% 2.83% 1.90% 1.78%*
======== ======== ======== ======== ========
Ratios to Average Net Assets:
Expenses, net of reimbursement .76% .58% .54% .59% .46%*
======== ======== ======== ======== ========
Expenses .76% .77% .85% .98% 1.15%*
======== ======== ======== ======== ========
Investment income -- net 2.80% 3.27% 2.84% 1.89% 1.86%*
======== ======== ======== ======== ========
Supplemental Data:
Net assets, end of period (in thousands) $169,551 $137,520 $103,717 $ 73,414 $ 41,437
======== ======== ======== ======== ========
* Annualized.
+ Commencement of Operations.
See Notes to Financial Statements.
</TABLE>
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 and distributions to shareholders -- The Fund declares
dividends daily and reinvests daily such dividends (net of non-resident
alien tax and back-up withholding tax withheld) in additional fund
shares at net asset value. Dividends are declared from the total of net
investment income, excluding discounts earned other than original issue
discounts. Net realized capital gains, if any, are normally distributed
annually after deducting prior years' loss carryforward. The Fund may
distribute capital gains more frequently than annually in order to
maintain the Fund's net asset value at $1.00 per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton
Services, Inc. ("PSI"), an indirect wholly-owned subsidiary of Merrill
Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily value
of the Fund's net assets, at the following annual rates: 0.50% of the
first $500 million of average daily net assets; 0.425% of average daily
net assets in excess of $500 million but not exceeding $1 billion; and
0.375% of average daily net assets in excess of $1 billion.
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.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), 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, MLFDS, 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, 1997, the Fund had a net capital loss carryforward of
approximately $36,000, of which $6,000 expires in 2004 and $30,000
expires in 2005. This amount will be available to offset like amounts of
any future taxable gains.
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, 1997, 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 four-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, 1997 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
Arizona Municipal Money Fund of CMA Multi-State Municipal Series Trust
as of March 31, 1997, 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, 1997
CMA Arizona Municipal Money Fund
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
its taxable year ended March 31, 1997 qualify as tax-exempt interest
dividends for Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund during
its taxable year ended March 31, 1997.
Please retain this information for your records.
