Add to that the fact that simply having universities like MIT and Harvard in the state doesn't necessarily make the people of the state any smarter than other states. Sure, you have the faculties of the universities but both a high percentage of them and of the students come from other states and countries.

If you were going to compare the residents of different states for intelligence, then you'd need to look at some common standard (say SAT or ACT scores). Evaluating them on school expenditures isn't valid for a host of reasons, starting with the differing cost of living around the country.