MATTOON — Republican gubernatorial candidate Andy McKenna said out-of-control spending is something that successful businesses avoid, but is something the state keeps incurring.

“In business, you have to live within your means. You can’t meet a payroll by borrowing money,” McKenna said as he discussed what he considers to be out-of-control spending by the state.

McKenna, president of Morton Grove-based Schwarz Supply Source, visited the Mattoon Country Club on Monday during a series of meetings with business leaders throughout Illinois. He said business leaders are concerned about growing state spending and are worried this will result in increased taxes.

“I have taken a pledge not to raise taxes,” McKenna said, adding a tax increase would place too great of a burden on families during difficult economic times.

McKenna said the state should focus on reforming its spending, not increasing taxes. In particular, he said the state could save money by expanding the use of managed care for its Medicaid system. This idea is suggested in the fiscal plan presented by McKenna and lieutenant governor runningmate Matt Murphy.

Their plan also calls for reversing the changes to Medicaid eligibility adopted during Gov. Blagojevich’s administration and implementing cost-containment measures recommended to the Senate Deficit Reduction Committee, health care reforms that the plan states could save Illinois more than $1.5 billion per year.

Pension reform should also be a priority, McKenna said. His and Murphy’s plan states that Illinois could save as much as $350 million per year by asking existing and new beneficiaries to increase their annual contribution to make the state’s pension system comparable to retirement programs in the private sector.

McKenna the state’s budget situation resulted from bad decisions by state leaders, but this situation will not turn around unless Illinois’ economy improves.

The candidate said the state should offer technical assistance to entrepreneurs, private-public investment funds that provide seed money to new ventures, and tax incentives that are targeted to encourage growth. He said these measures have spurred growth in other states, such as several new bio-tech companies in Wisconsin.

Asked how he would get his agenda approved by a Democratic-majority state legislature, McKenna said the key would be getting a mandate for fiscal reform from Illinois voters and winning more seats for Republicans. He said he thinks the general election is going to bring about a clear change.