Governor Stein Signs 6 Bills to Bolster NC's Workforce

This week, Governor Josh Stein signed six bills into law, each one designed to steady and strengthen North Carolina's workforce and communities. From rethinking how the state handles its pension fund to supporting police and social workers, these measures tackle real challenges faced by everyday people. They arrive as states nationwide wrestle with managing public resources while meeting growing needs.

These policy shifts affect retirees planning their futures, officers patrolling neighborhoods, and families seeking care.

The signings reflect a careful balancing act. They address urgent needs, like keeping experienced police on duty, while planning for long-term stability, like securing pensions against market swings. Yet opinions differ on the best approach. Some question the risks of new investment strategies, while others wonder if these laws do enough to tackle bigger, structural problems.

This article explores three key bills, on pensions, law enforcement, and social work licensing, to explain their impact on North Carolina. It focuses on the people affected, the debates behind the decisions, and the hurdles still ahead. Let's dive in.

House Bill 506, the State Investment Modernization Act, overhauls how North Carolina manages its pension fund for state employees. The law replaces a single-treasurer system with a five-member board tasked with guiding investments. Treasurer Brad Briner, who pushed for the change, estimates that a one-percentage-point increase in returns could add $2 billion to the state budget. Governor Stein praised the move, noting it brings North Carolina in line with national standards for smart investing.

Public pension funds, holding over $4 trillion across the U.S., are critical but complex. States like Washington have neared full funding by investing in stocks and alternative assets, yet 2022's market losses, averaging nearly 5 percent, exposed the risks. North Carolina's fund, now shifting toward equities, seeks higher returns but faces concerns about volatility that could affect retirees' security.

Proponents of the new board argue it brings expertise and reduces political influence over investments. However, others note that multi-member boards in some states haven't always improved outcomes. At its core, the debate is about ensuring teachers, public safety workers, and other employees can rely on their pensions for a stable retirement.

House Bill 50, known as the LEO Special Separation Allowance Options, addresses a key challenge: retaining experienced law enforcement officers. The law allows officers to continue working without forfeiting a retirement stipend, a penalty that has driven some to retire early. Stein, who advocated for this as Attorney General, said it strengthens public safety by keeping seasoned police in communities.

Nationwide, police departments face staffing shortages. Surveys show 70 percent struggle to hire, with many operating at just 90 percent of their authorized levels. Cities like New York and Minneapolis have lost thousands of officers since 2020, citing burnout, public criticism, or better job offers elsewhere. North Carolina's law aims to curb this trend by removing financial barriers for officers who want to stay.

Police unions and community leaders back the law, saying it values experience and stabilizes forces. Yet some argue it sidesteps bigger issues, like competitive starting salaries or mental health resources. Others question the budget impact if more officers delay retirement. The law's success depends on whether it keeps officers on duty and improves safety for residents.

House Bill 231 enrolls North Carolina in the Social Work Interstate Licensure Compact, allowing social workers licensed in states like Georgia or Tennessee to practice here without lengthy re-licensing. Stein highlighted its potential to increase access to mental health care, especially for children and families. With demand for social workers rising, the law seeks to address shortages by making it easier for professionals to move or offer telehealth.

Interstate compacts are spreading as states tackle workforce gaps in fields like health care and education. Research shows state-specific licensing reduces worker mobility by up to 7 percent, but reforms like this boost employment in adopting states by nearly one percentage point. Arizona, for instance, has issued over 8,000 out-of-state licenses since 2019, showing the power of portability.

Advocates say the compact will help rural areas and expand telehealth, where care is often limited. Concerns remain about varying state standards or potential gaps in oversight, though shared data systems aim to track licenses and disciplinary actions. The law's impact will rest on how effectively it brings more social workers to those who need them most.

These bills, on pensions, police, and social work, show North Carolina taking practical steps to address complex challenges. They matter to the state employees saving for retirement, the officers protecting neighborhoods, and the families seeking support. Stein's actions highlight a commitment to workforce stability and community well-being, aligning with his broader goals of better education, clean energy, and public safety.

Unanswered questions remain. Will the new pension board deliver strong returns without excessive risk? Can the police retention law meaningfully reduce staffing shortages? Will the social work compact bring care to underserved communities? These outcomes will take time to measure, but they'll shape the state's future.

For now, these laws lay a foundation for a more resilient North Carolina. They focus on people, retirees, officers, social workers, and the systems that sustain them. The challenge ahead is ensuring these changes translate into real improvements for the state and its residents.