Governor Mitch Daniels has sent a letter to all members of the Indiana Congressional delegation about last week's proposal by a federal transportation commission to raise the federal gasoline tax by 40 cents. In the letter, the governor encourages the members to oppose the measure, explaining that the state has fully funded its transportation needs for at least the next 10 years without raising taxes and Hoosiers don't need further increases in gas prices.

The text of the letter is below and in the attached document:

"The proposal last week by the National Surface Transportation Policy and Revenue Commission to raise the federal gasoline tax by $0.40 would be a harmful and unnecessary step from Indiana’s standpoint. I urge you to oppose it and to vote “no” if such a measure reaches the floor of the House of Representatives.

Everyone understands that the nation faces an enormous infrastructure shortfall. But a massive federal gas tax increase is the wrong answer for our state because:

1.) Through our Indiana Toll Road lease Indiana has funded our transportation needs for at least a decade, without either taxes or borrowing. We will set a new record for road building and bridge repair every year through 2015, while holding gas taxes where they are. Simply put, we do not need the money and our citizens clearly do not need the additional taxes.

2.) When Washington collects gas taxes, Indiana gets the short end of the stick. As you know, for every dollar paid by an Indiana motorist, only $0.92 comes back in federal highway funds. The rest goes to subsidize projects in other states. Please don’t make a bad deal worse; 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.

At $3 a gallon, I know I needn’t remind you how harmful to family budgets a forty cents per gallon increase would be. But even if gasoline were less expensive, this proposal would be unfair to Indiana taxpayers and unnecessary in view of the tax-free, debt-free way we have dealt with our own state’s transportation challenges."