California has pulled itself back from the brink of bankruptcy, but it’s not out of the woods yet. For the first time in a long time, California’s budget boasts a surplus, politics in Sacramento aren’t as dysfunctional as they are in Washington D.C., and Standard & Poor’s recently upgraded the state’s outlook from ‘stable’ to ‘positive’. All of that is good news for one of the largest economies in the world, but California must do more to protect itself against dangerous vulnerabilities.