This "Technical Guide" describes the methodology and concepts used to measure and grade the performance of the 50 states in the higher education arena. Part I presents the methodology for grading states and provides information on data collection and reporting. Part II explains the indicators that comprise each of the graded categories. Specifically, this section details the construction of each indicator--its scope, source, and computations. Part III provides data sources for non-graded information that are not taken into account in the final grade, but are important to the state assessment. Non-graded information related to the demographic, economic, or educational characteristics of states is provided to enhance understanding of the graded state performance. Appended are: (1) Learning: Institutional Sampling Groups by State; (2) Learning: Final List of Institutions Participating in CLA/WorkKeys Testing; (3) Learning: Sample-Selection Guidelines for the ACT WorkKeys Assessment and the Community College Survey of Student Engagement (CCSSE); (4) Learning: Sampling Results by State; and (5) Learning: Demographic Coverage of Testing Samples. [William Doyle contributed to the writing of this document. For the main report, "Measuring Up 2004: The National Report Card on Higher Education," see ED508096.]