It isn't replacing the Tri-star. That will still be the flag and state symbol. This is for unifying state agency logos...almost every different agency and sub-agency has a different logo. You need something that can be scaled to any size and still be legible. Is it creative? Hell no. But is will be effective. BTW, the agency that did it was the cheapest bid.
As far as cost, it is relatively cheap, especially dealing with the bureaucracy of getting approval thru government. BBC's logo? The 3 seperate blocks with B - C - C in it? Cost $1.8 Million.