Daniels was once a Bush cabinet member, right?
Yes, he was the Director of the Office of Management and Budget.
Well, that is no good thing for Daniels (well not really; Indiana did after all elect him to a first term in the same year that they went for Bush by ~20 points, and to a second term by double digits despite flipping in the presidential election and barely going to Obama). Still, Bush II's unpopularity will be remembered for some time, and Obama, who would still campaign as change from Bush, would definitely use that link against him.