If the feds don't approve the Citynet project, the $1.4 million Cisco credit would be used for equipment unrelated to broadband, Martin said.
The excess funds for the Citynet project would come from a $126.3 million federal grant that the state received in 2010 to expand high-speed Internet.
The project has been plagued by allegations of mismanagement and reckless spending.
Last February, the state Legislative Auditor released a scathing report, finding that state officials wasted at least $7.9 million -- and up to $15 million -- on oversized Internet routers.
Last month, state Senate President Jeff Kessler urged federal officials to "promptly act favorably" to approve Citynet's project.
"While progress has been made with regard to broadband access, West Virginia still has tremendous room for broadband access improvement," Kessler, D-Marshall, said in a letter to federal broadband officials. "Given the limited federal and state resources available...it is essential that we invest every available dollar that we can to improve broadband services in West Virginia."
Frontier Communications, West Virginia's largest Internet provider, has opposed the Citynet project, saying the proposal doesn't meet federal broadband grant guidelines.
Frontier installed 675 miles of fiber-optic cable to public facilities in West Virginia as part of the statewide broadband expansion project. Frontier charged the state $40 million for fiber construction.
Martin has asked that the Legislative Auditor review Frontier's invoices.
"Considering the report issued by the Legislative Auditor that reported the misspending of millions of dollars in other parts of the program," Martin said, "I would like to encourage leaders in the Governor's Office and Legislature to ask the auditor to thoroughly review the remaining invoices prior to paying them to avoid additional waste."
Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.