CHICAGO — As federal stimulus funds that many states have relied on to balance their budgets run out, states will face tough decisions over how to adapt to a lower revenue environment, a Moody’s Investors Service analyst said at a conference here this week.

The good news is that most states were better prepared to cope with the current downturn compared to the last recession, in 2000, according to analyst Nicholas Samuels. The bad news is that it will likely take states longer to recover from this downturn. During the last recession, Moody’s downgraded 14 states. It has downgraded six states during the current turmoil.

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