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 Arizona include: (1) Over the past decade, Arizona has made no notable progress in preparing students to succeed in college. This year Arizona receives a D in preparation; (2) In Arizona, the proportion of students enrolling in higher education has decreased over the past decade. Despite that decline, Arizona earns a B+ in participation this year; (3) Over the past decade, Arizona has lost ground in making higher education affordable. This year Arizona receives an F in affordability; (4) Over the past decade, Arizona has seen substantial improvement in the proportion of students earning a certificate or degree in a timely manner. Despite that improvement, Arizona receives a C+ in completion this year; (5) Over the past decade, Arizona, like many other states, has reaped a notable increase in benefits from having a more highly educated population. This year, Arizona earns a B in benefits; and (6) Like most states, Arizona received an Incomplete in learning because there are no comparable data that would allow for meaningful state-by-state comparisons in learning. [For "Measuring Up 2004: The National Report Card on Higher Education," see ED508096.]