Punitive damages have to be large enough to discourage the harmful behavior. That means they need to be scaled to the budget of the person doing the harm, not to the harm itself. Maybe the State should keep whatever of the punitive part seems too much larger than the actual damage.
The alternative is that the fine is just "cost of doing business". Rich people park any old place, any old time, and just pay their parking fines. OK for city government revenue, but bad for public safety, and worse for fairness and civic life.