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? This state report card begins by summarizing the state's performance today compared with ten years ago, and by presenting key policy questions that these results suggest for the state. Next, the state's performance in each category is described in greater detail, followed by additional contextual information. Findings for Montana include: (1) Showing improvement over the past decade, Montana has performed well in preparing students to succeed in college. Montana receives a B+ in preparation this year; (2) Montana, over the past decade, has seen a decline in its performance in enrolling students in higher education. This year Montana receives a C in participation; (3) Montana has shown no notable progress in providing affordable higher education opportunities over the past decade. Montana, along with many other states this year, receives an F in affordability; (4) Despite notable improvement over the past decade, relatively few students in Montana earn a certificate or degree in a timely manner. Montana receives a C in completion this year; (5) Over the past decade, Montana has shown improvement in reaping the benefits of having a more highly educated population. Despite that improvement, Montana receives a C in benefits this year; and (6) Like most states, Montana received an Incomplete in learning because there are no comparable data that would allow for meaningful state-by-state comparisons in learning. The Incomplete in this category highlights a gap in the ability to measure each state's educational capital--the reservoir of high-level knowledge and skills that benefit each state. [For "Measuring Up 2004: The National Report Card on Higher Education," see ED508096.]