An engine is selectively operative in one of a plurality of engine states to transfer torque to an input member of a hybrid transmission. The hybrid transmission is operative to transfer torque between the input member and a torque machine and an output member to generate an output torque in response to an operator torque request. A method for controlling the engine includes monitoring the operator torque request, determining operating power costs associated with a plurality of candidate engine states in response to the operator torque request, determining transition costs for transitioning the engine from a present engine state to each of the candidate engine states, determining stabilization costs for operating the engine in the present engine state and subsequently operating the engine in each of the candidate engine states, and selecting a preferred engine state based upon the operating power costs, the transition costs, and the stabilization costs for the plurality of engine states.