Take advantage of using php, not html only. With automating some parts of the job, you'll have less to write and less to make mistakes in.
<?php //do not use short tags - they'll be out soon
//first the array of states
$states = array('Alabama','Alaska');//and so on
echo "<p>State, Territory or Province </p><br>";
echo "<select name='co_state' size='1'";
echo ' <option value="">- Select -</option>';
foreach ($states as $state)
{
echo '<option value="'.strtoupper($state).'"'
.(($var == strtoupper($state)) ? ' selected' : '')
.'> '.$state.' </option>';
}
echo "</select>";
?>