UNLOCKING POTENTIAL: THE BUSINESS CASE FOR EARNED TIME CREDITS IN NORTH CAROLINA'S PROBATION AND PAROLE SYSTEM

For businesses, the concept of "return on investment" is paramount. We analyze policies, programs, and strategies through the lens of what they yield. When it comes to criminal justice reform, the business case for implementing earned time credits (ETCs) for probationers and parolees is compelling.[1] ETC programs allow individuals under community supervision to reduce the length of their supervision terms by demonstrating compliance with conditions, completing rehabilitative programs, and engaging in positive behaviors. These programs aren't just about compassion; they're about smart public policy that drives economic and social benefits.

ETC Programs Expand the Workforce

By incentivizing employment and skill development, ETC programs help a previously marginalized population become a valuable—and currently underutilized—talent pool. As North Carolina has only 55 available workers for every 100 open jobs,[2] this addition to the workforce is sorely needed. Plus, when individuals successfully complete supervision and re-enter the workforce, they contribute to the economy through taxes and consumer spending.

ETC Programs Reduce Recidivism and Enhance Public Safety

Nationwide, 95% of state prisoners are eventually released back into their communities.[3] Unfortunately, studies indicate that unemployed individuals under supervision are significantly more likely to reoffend.[4] However, when these individuals have a stake in their communities through legitimate work, common sense suggests that they are significantly less likely to re-offend. This translates to safer communities, less crime, and a reduced burden on the criminal justice system. By incentivizing work through ETC programs, individuals are motivated to seek and retain employment, fostering economic self-sufficiency and reducing reliance on public assistance.[5]

Research backs this up. For example, Washington State’s expanded earned time program led to a 3.5%  reduction in future felonies among participants, while also producing significant cost savings—over $15,000 per participant.[6] Missouri’s ETC reduced its supervised population by 13,000 in three years, and increased the rate of successful completion of community supervision.[7] Programs in Maryland and New York have yielded similar cost savings and reductions in recidivism.[8]

ETC Programs Provide Fiscal Savings for the State and its Taxpayers

The financial implications of incarceration are substantial. In North Carolina, the average annual cost to incarcerate an individual exceeds $50,000. And, the North Carolina Department of Adult Correction reports that as of June 2, 2025, 62,749 people in the state are on probation, and 12,258 people are on parole or post-release supervision.[9] Managing this population is resource-intensive, with costs for supervision, officer caseloads, and potential reincarceration straining state budgets.

However, ETC programs incentivize compliance, allowing low-risk, compliant individuals to shorten their supervision periods. By rewarding compliance and employment, these programs decrease the number of people under supervision, allowing probation and parole officers to focus resources on higher-risk individuals.[10] This reduction in caseload translates to system-wide fiscal savings and more efficient use of public resources.[11]

Conclusion

In summary, ETC programs represent a solid strategic investment. They empower individuals to take ownership of their rehabilitation, provide a strong incentive for positive behavior, and ultimately contribute to a more stable and productive society. For businesses, this means a larger, more engaged workforce, safer communities, and a more efficient use of taxpayer dollars. As we look to build stronger economies and healthier communities, expanding and optimizing earned time credit programs should be a priority for every business-minded stakeholder.

[1] “Probation” is a term of court ordered supervision in the community in lieu of incarceration. “Parole” is the discretionary early release from prison, which is accompanied by supervision in the community. “Post-Release Supervision” is a mandatory term of supervision in the community after release from prison. https://www.dac.nc.gov/divisions-and-sections/community-supervision

[2] https://www.uschamber.com/workforce/understanding-north-carolinas-labor-market

[3] https://ciceroinstitute.org/research/employment-based-earned-time-credits-in-adult-supervision/

[4] https://ciceroinstitute.org/issues/public-safety/probation-and-parole-earned-time-credits/

[5] https://ciceroinstitute.org/issues/public-safety/probation-and-parole-earned-time-credits/

[6] https://www.prisonfellowship.org/resources/advocacy/release/earned-time-credit/

[7] https://www.prisonfellowship.org/resources/advocacy/release/earned-time-credit/

[8] https://www.prisonfellowship.org/resources/advocacy/release/earned-time-credit/

[9] https://www.dac.nc.gov/information-and-services/publications-data-and-research

[10] https://ciceroinstitute.org/research/employment-based-earned-time-credits-in-adult-supervision/

[11] https://ciceroinstitute.org/research/employment-based-earned-time-credits-in-adult-supervision/

Opening Doors to Opportunity: The Benefits of Removing Degree Requirements for State Jobs in North Carolina

For decades, a college degree has been a default requirement for government jobs, regardless of whether the role truly demands it. While a degree can certainly signal skills and dedication, it’s far from the only path to competency. By removing blanket degree requirements, North Carolina is recognizing that skills, experience, and alternative training can be just as valuable.

In a significant move toward expanding opportunity and equity, North Carolina has joined a growing list of states reconsidering the role of college degrees in public hiring. In March 2023, former Governor Roy Cooper signed Executive Order No. 278, which eliminated degree requirements for most state jobs, and shifted the focus to skills, experience, and competencies. This policy change aligns with a national trend, recognizing that real-world experience and alternative credentials often rival—or exceed—the value of a four-year degree.

Here’s why this policy shift matters for North Carolina’s workforce, economy, and future:

Broadening the Talent Pool

The North Carolina Office of State Human Resources reports that nearly 75% of the state’s job postings in recent years included degree requirements. However, according to the U.S. Census Bureau, just 34.9% of North Carolina adults hold a bachelor’s degree or higher. By removing unnecessary degree barriers, the state is opening thousands of job opportunities to the majority of its residents. This is especially impactful in rural counties, where access to higher education is often limited by cost and geography.

Promoting Equity and Inclusion

Degree requirements have historically excluded qualified candidates—especially from marginalized communities. Data from the North Carolina Justice Center reveals that systemic barriers to higher education disproportionately affect Black, Hispanic, and Indigenous populations in the state.

By removing these hurdles, North Carolina is addressing long-standing inequities in access to stable, well-paying public sector jobs.

Addressing Workforce Shortages

State agencies face challenges filling essential roles, from IT and public health to transportation and environmental services.

Skills-based hiring helps close this gap. It enables the state to tap into a broader pool of candidates who may have gained expertise through apprenticeships, military service, technical training, or on-the-job learning. For example, a skilled IT technician with certifications and five years of hands-on experience is now eligible for roles that once required a computer science degree.

Boosting Economic Mobility

Removing degree requirements helps North Carolinians access higher-paying, stable employment, which can be life-changing for individuals and their families. According to NC Commerce Labor & Economic Analysis, public sector jobs often offer better benefits and job security than comparable roles in the private sector.

These jobs serve as crucial rungs on the economic ladder—especially for those transitioning out of lower-wage service work, the justice system, or military service. By valuing skills over formal education, the state is investing in the upward mobility of its workforce.

North Carolina has already committed to workforce development through programs like NCWorks and the NC Apprenticeship Program. Aligning hiring practices with these initiatives makes the state a model employer that walks the talk on economic inclusion.

Encouraging Lifelong Learning Over One-Time Credentials

A growing number of North Carolinians are pursuing alternative credentials such as community college certificates, online coursework, and industry certifications. The state’s myFutureNCinitiative emphasizes credential attainment as a key to a thriving economy—but not all credentials require a four-year degree.

By aligning hiring practices with this evolving education landscape, North Carolina affirms that learning doesn’t stop at graduation—it’s a lifelong process.

Looking Ahead

The removal of degree requirements is more than a policy tweak—it’s a paradigm shift. It signals that North Carolina values what people can do, not just where they went to school. As this policy takes root, it offers a model for inclusive, agile, and future-ready government.

No Time Like the Present: Eliminating the Franchise Tax

North Carolina’s General Assembly has taken significant strides over the past decade to enhance the state’s position as a desirable business destination. However, there is work left to be done, and eliminating the state’s onerous and antiquated franchise tax should be a top priority for lawmakers in 2025.

Eliminating the franchise tax in North Carolina would bring several benefits, including: 

Simplify the tax system. The franchise tax is complex and burdensome for businesses to calculate, especially those with multiple subsidiaries. Removing it would reduce administrative costs and compliance challenges.

Increase business investment and job creation. As yet another “cost of doing business,” the franchise tax can deter investment, particularly during economic downturns. Eliminating it would encourage businesses to invest in new facilities, equipment, and jobs.

Encourage startups and struggling businesses, rather than penalize them. The fact that businesses must pay the tax even if they don’t make a profit makes it particularly punitive for companies that are already struggling, or are just starting up.

Eliminate North Carolina’s competitive disadvantage. Most states no longer have a franchise/capital stock tax, and several of those that do are in the process of phasing it out. This obviously puts North Carolina at a competitive disadvantage. Eliminating the franchise tax would make the state more attractive for investment and economic growth.

Reduce double taxation. The franchise tax can result in double taxation for businesses with subsidiaries. Removing it would eliminate this unfair burden, and allow businesses to reinvest their resources.

In conclusion, eliminating North Carolina's franchise tax is not just a matter of simplifying the tax system; it is a strategic move to foster a more business-friendly environment. By removing this outdated and burdensome tax, the state can attract greater investment, stimulate job creation, and support the growth of startups and struggling businesses. This change would position North Carolina more competitively on the national stage, aligning it with other states that have already phased out similar taxes. Ultimately, the elimination of the franchise tax would pave the way for a more robust and dynamic economy, benefiting businesses and residents alike. The time for action is now, and lawmakers must prioritize this critical reform in 2025.

Manufacturing: Room for Improvement 

North Carolina is no stranger to manufacturing. The Old North State is home to companies producing everything from poultry and tobacco products to software, pharmaceuticals, tires, and nuclear reactors. According to the NC Chamber, manufacturing accounts for nearly 17% of the state’s total output, and employs nearly 10% of the state’s workforce. That said, a recent article posted on the finance website Insider Monkey identified the 20 most industrial cities in the United States, and North Carolina is conspicuously absent from this list: 

20. Scranton, PA

19. Akron, OH

18. Austin, TX

17. Greenville, SC

16. Elkhart, IN

15. Columbus, OH

14. Grand Rapids, MI

13. Cincinnati, OH

12. Cleveland, OH

11. Milwaukee, WI

10. Phoenix, AZ

9. Philadelphia, PA

8. Minneapolis, MN

7. Atlanta, GA

6. Houston, TX

5. Detroit, MI

4. Dallas, TX

3. New York, NY

2. Chicago, IL

1. Los Angeles, CA 

There is clearly room for improvement. The Milken Institute has estimated that for every job created in manufacturing, 2.5 jobs are created in other sectors. Keeping manufacturing close to home can result in better brand image, faster and more efficient distribution, lower shipping costs, economic resilience, and sense of community. As shortened transportation and delivery distances reduces carbon emissions from transportation, in-state manufacturing can even help the environment!