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Where does the fine money go? Building more red-light cameras?

Back to taxpayers. Subtract only the cost of installing and maintaining the cameras and aggressively audit that annually. Cut everyone a check at the end of the year. Buy each household a pony. Have a really good 4th of July fireworks display. It doesn't matter, as long as the government can't spend it for any government program. (And actually the pony and fireworks programs might be susceptible to corruption - just send a check)

Or in the case of a private company contracted to run the cameras, don't give a private company a contract to run the cameras. At least not a contract where they get paid in proportion to the fines collected.

No one should profit off bad behavior. No government program's funding should have to depend on people driving badly.

bike lanes, pedestrianized streets, and public transit

That sounds like an easy obvious win. But see then you've made bike lanes and public transit depend on funding from car drivers, specifically ones who run red lights. When what you want as a bicyclist are safer drivers. And what you want as a bus rider is fewer cars.

You're putting those public services and their sources of funding in conflict with each other.

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