Why Doesn't Mitch Daniels Want an Increase in Federal Gas Taxes?

I saw Governor urges Ind. delegation to vote against gas tax increase after I wrote my post Mitch Daniels and Roads - Following a Bush Ideology?.

Daniels sent a letter to all members of Indiana’s congressional delegation, saying an increase in federal gas taxes would be harmful and unnecessary for Hoosiers. The lease of the Indiana Toll Road has funded transportation needs in Indiana for at least a decade, he said, without using taxes or borrowing.

“Simply put, we do not need the money and our citizens clearly do not need the additional taxes,” Daniels said.

Daniels also noted that for every dollar paid by an Indiana driver, the state gets just 92 cents back in federal highway funding, with the rest going to projects in other states.

“Please don’t make a bad deal worse,” Daniels wrote. “Indiana would be far better off if the federal government abolished its gas tax and let us collect and reinvest what we need here at home.”

Putting this with what I wrote earlier and with our Governor's love for selling off state assets just makes me suspicious.

Besides, the Governor shows his limited understanding of finance. Mitch keeps touting how much his 75 year lease of the toll road will pay for every highway and its upkeep - perhaps till the end of time. Mitch has trouble getting the highway project already done for state highways (see the comments to the Star-Press article). Now he thinks Hoosiers would be better off without any federal funding? Where is going to get that money? Hike the state gas tax? Rely on property taxes?

I strongly suspect that we will find Mitch Daniels' solution for maintaining Indiana's highways is to turn all of them into toll roads.