EdWeek's Politics K-12 blog reports that some states think Race to the Top is tilted to heavily urban states. They cite Vermont and North Dakota, which may be planning to wait until the second round of RTTT competition. As nearly as I can tell, the argument is mainly that charters are harder to implement in rural states, which does indeed fit Kentucky. There's also a suggestion that Vermont thinks it does not need to change how it distributes highly effective teachers, but I don't see the rural connection there.
For myself, I think a rural state--our rural state--can make up the lost charter points with a robust commitment to clear standards, strong assessments, potent data systems, effective evaluations and professional development, and a robust plan for turning around weak schools.