Yes, I agree that municipalities know best, but there's a difference between fair and equal. The equal thing to do is not necessarily the fair thing to do. In this case, the guys with the best ideas would get the most funding.
So, yes, do provide additional funding and let municipalities do smart things with it. However, when it comes to major projects, set up an $800 million fund. People can come in and make bids on that, and may the best man win.