That isn't exactaly what they are doing. There is a lot more to this story than it seems.
Basically, a nativity scene was put up at the capital, then an Atheist group said "hey if the christians get a nativity, we should get something" so they put up a sign. The sign was then stolen, and I'm not sure if it's been replaced or not yet. Since then, a bunch of other people have been requesting additional religious displays and enough people asked for a Festivus pole the state is going to display one along with all the other stuff.
It doesn't actually mean the state is celebrating it.
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