FORT MILL TOWNSHIP -- Fort Mill Schools Superintendent Keith Callicutt on Monday night accepted a three-year contract with the school district.

The new agreement offers him graduated pay increases over the course of the contract. The contract will give him a 2 percent increase this year, 4 percent next year and 6 percent the following year, with satisfactory evaluations.

Callicutt, who was a finalist for the superintendent's post in Horry County earlier this year, called the contract an incentive to stay for three more years.

"I'm in favor of this," he said. "In these budget times, it's wise."

School board Chairwoman Jan Smiley called it "a difficult budget year" in view of the economy and changes in the state's formula for funding public schools.

Callicutt, who has been with the district for three years, earns $162,477 annually. With the 2 percent increase, he will earn more than $165,000 next year.

Hired in 2005, Callicutt came to Fort Mill from the Newberry County School District. At the time, the Fort Mill School Board said one of the reasons he was an attractive candidate is the similarities between the two districts. Newberry is a growing district like Fort Mill.

In March, township voters approved a $95.9 million bond package to pay for two elementary schools, one middle school and $5 million in land purchases for future school sites. The packages includes $8.718 million to pay for stadium seating and other amenities at Nation Ford High's football field and a second gym at Nation Ford and Fort Mill high schools. Officials are now looking for land for three of five new schools scheduled to open between 2009 and 2011.

The state education department considers Fort Mill the fastest-growing school district in South Carolina. Projections indicate the school district will need a third high school, a fifth middle school and a 10th elementary school around 2013, an 11th elementary school in 2015, a fifth high school in 2015-2016 and a sixth middle school in 2016.