Will/Should States Decide Who Gets Broadband Stimulus Dollars?

According to the stimulus law, the National Telecommunications and Information Administration is supposed to seek out and consider states' advice about which broadband projects should be funded. But should the states actually decide? The DC rumor mill says that because of the overwhelming wave of applications about to come crashing down on NTIA they're leaning towards shifting the responsibilities of making these decisions on who gets what to the states. Is that a good idea? It seems like there needs to be a federal role in deciding which projects to fund so that this money goes to the best, most ready projects not those with the best PR and political connections.