Alternatively, you could require insurance, similar to medical malpractice insurance, that pays out for law enforcement malfeasance. If you’re uninsurable due to your actions (egregious and/or chronic), you’re no longer a cop. The cost to your colleagues (premiums) also goes up because of your behavior.
This takes the financial burden off taxpayers, but still uses economic incentives to encourage the behavior we expect from public servants.
It puts a strong incentive on those to take responsibility for their coworkers. To cultivate a culture of integrity, through interactions, through hiring and firing, through setting an example for those you lead. Cops love to talk about having each other's backs; let's see them put those words into action where it counts.
Premiums could be priced in such a way that it takes into account your personal record, to incentivise your own behaviour; your local/metro PD's record, to incentivise them policing each other; and the state's record in an attempt to address systemic and cultural issues.
Your body cam "malfunctioned"? Congratulations, you just increased the insurance premiums for yourself and all your colleagues.