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/