Along with their analysis of the President's Budget, on Friday, CBO updated its Social Security projections. And as it turns out, the surpluses are now a thing of the past.

For the last two decades, the Social Security system has brought in significantly more revenue (mainly through the payroll tax) than it has spent on benefits. These resulting surpluses have been used to subsidize other parts of the budget, and then credited to the Social Security trust fund.

The United States is not the first nation to face tough fiscal challenges. Other countries have faced similar fiscal challenges – and gotten out of them.

In a new paper ("Fiscal Turnarounds: International Success Stories"), CRFB’s Fiscal Roadmap Project looks at successful fiscal turnarounds around the world and possible lessons for the U.S.

What are the lessons?

The nation's soaring federal debt can no longer be ignored and Congress and the president must develop comprehensive plans to avoid a looming fiscal crisis, budget experts, including CRFB President Maya MacGuineas, told the House Budget Committee Thursday. "What was once a long-term fiscal problem has become an immediate one," MacGuineas said during the panel's hearing on long-term deficits.

Senate Budget Committee chairman Kent Conrad (D-ND) and ranking Republican Judd Gregg (R-NH) today introduced legislation to create an 18 member bipartisan commission whose recommendations for confronting the long-term debt crisis would be voted on by Congress. The Bipartisan Task Force for Responsible Fiscal Action would review all facets of the federal government’s finances, including taxes, and entitlements such as Social Security and Medicare.

Citizens from across the country had a message yesterday for lawmakers: we are working together to solve our fiscal challenges, why can’t you?

Today, the White House nominated Charles Blahous, III and Robert Reischauer. Both have been nominated to fill vacant posts for public trustees on the Board for the Social Security Trust Funds. These two public trustee positions are meant to represent the public on the Board in order to increase “confidence in the integrity of the trust funds.”

Today, the Social Security Administration (SSA) announced that, in light of the deflation experienced over the past year, there will be no COLA for Social Security benefits in 2010. This will mark the first year without a COLA since automatic indexing began in 1975.

According to Bloomberg News, the number of Social Security beneficiaries increased by 19 percent, or 2.6 million retired workers, in FY 2009. This increase was almost 50 percent more than expected. In FY 2008 only 2.1 million new retirees entered as beneficiaries of Social Security. In addition, the number of disabled workers receiving first-time benefits increased by 1 million this past year.

As the Associated Press recently reported, Social Security has come under considerable strain as a result of the economic crisis. Payroll tax revenues have suffered -- both because of lower wages and fewer contributors (due to high rates of unemployment); and at the same time, outlays have increased as many newly unemployed seniors have begun collecting early retirement benefits.