I can't really believe there's a straight up choice between non-corrupt police and bankrupt police departments. It is true that US police seem to funded in ways that create incentives to corruption. An ideological commitment to low taxes means institutions like the police need to find other sources of revenue. This leads to a proliferation of regulations and drug and driving laws that can be used to impose fines, systems like civil forfeiture, and reliance on private "donations".

In the long term, this leads to a fundamentally adversarial and extractive relationship between the police and the populace, and the situation right now where police are widely hated, or at least distrusted, by significant sections of the population.

The solution to all of this is to break this extractive relationship: To prevent the police from profiting from the enforcement of some laws over others, or from seizing property only to sell it for their own gain. And, yes, to accept a rate of general taxation and redistribution that can be used to fund the institutions of a modern state. So long as the US continues to pursue the current tax model, the same shortfalls and perverse incentives to find alternative sources of revenue with exist, leading to the same poor outcomes in so many areas of government.