The problem with that is as inefficiency grows within the organization that receives the money - so do incentives to capture more. Even if it's coming from an external organization (the police), they can still communicate and find ways to work together through this perverse incentive.

This is more difficult if 100% of it goes out the door. Hypothetically you could still get ecosystem issues, though. Where an org argues for more fines so that their existence is justified and that they don't shrink. etc.