After opening his first season at Michigan State in 2003 with wins over Western Michigan and Rutgers, Smith's team was unable to hold off a series of late game drives by WAC member Louisiana Tech, losing a 20–19 decision. The Spartans ended the regular season 8–4, and were then defeated by Nebraska, 17–3, in the 2003 Alamo Bowl, a game which also featured the injury of the Spartans' anticipated star quarterback Drew Stanton while he was playing on special teams. Smith was named the Big Ten Conference Coach of the Year in 2003.