Cities and States pay out a lot of taxpayer money paying for wrongful death of citizens by police officers. As a result the citizens either must pay higher taxes or receive less governmental services while the family of the decedent may become multi-millionaires.
I find it in incongruous that the families who were not deprived of millions of dollars are given such huge amounts of money while depriving the public.
If the public does not want to pay for the misconduct of the people that they hire to run society, then the public should strive to ensure that they hire people who do not commit abuses.
If the public hires people who go around committing atrocities, then the public is going to have to pay for those atrocities.
If you don't like paying for these atrocities, then get active in promoting local reforms so that fewer such atrocities occur.
Could the State enact a law to prohibit cash payments to such persons beyound their economic losses?
Probably, but such a law would be profoundly unjust. There would also likely be a shift towards federal civil rights lawsuits to compensate for the lack of a state remedy.