This state report card is derived from "Measuring Up 2004," the national report card for higher education. Its purpose is to provide the public and policymakers with information to assess and improve postsecondary education in each state. "Measuring Up 2004" is the third in a series of biennial report cards. The report card grades states in six overall performance categories: (1) Preparation: How adequately are students in each state being prepared for education and training beyond high school?; (2) Participation: Do state residents have sufficient opportunities to enroll in education and training beyond high school?; (3) Affordability: How affordable is higher education for students and their families?; (4) Completion: Do students make progress toward and complete their certificates and degrees in a timely manner?; (5) Benefits: What benefits does the state receive as a result of having a highly educated population?; and (6) Learning: What is known about student learning as a result of education and training beyond high school? Findings for Texas include: (1) Over the past decade, Texas has shown improvement in preparing students to succeed in college. Despite that improvement, Texas lags behind many other states and this year receives a C+ in preparation; (2) Texas has made no notable progress in enrolling students in higher education over the past decade. This year Texas receives a C in participation; (3) Texas has made no notable progress in making higher education affordable. This year Texas receives a D in affordability; (4) Over the past decade, Texas has seen substantial improvement in the proportion of students earning a certificate or degree in a timely manner. Despite that improvement, Texas receives a C in completion this year; (5) Over the past decade, Texas has increasingly benefited from having a more highly educated population. This year Texas receives a B- in benefits; and (6) Like most states, Texas received an Incomplete in learning because there are no comparable data that would allow for meaningful state-by-state comparisons in learning. This report also includes additional information, questions and answers, state grades, and "Measuring Up 2004" resources. [For "Measuring Up 2004: The National Report Card on Higher Education," see ED508096.]