try this

class FindStateCodeComponent extends Object
{
    var $ConvertedStateCode = null;
    var $ConvertedStateName = null;
    function startup(&$controller)
    {
        $this->controller = & $controller;
        $this->ConvertedStateCode = 'foo';
        $this->ConvertedStateName = 'Bar';
    }
}


class SchoolsController extends AppController
{
    var $name = 'Schools';
    var $components = array('FindStateCode');
    function index(){
        $this->set('Schools',
"$this->FindStateCode->ConvertedStateName");
    }
    function beforeRender(){
    $this->set('MenuSelected', '2');
    }

}


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