I do agree with this actually. Rather that going straight to law enforcement budgets the money should go to the general coffers to be allocated by the legislature.

I'd rather see it directed, specifically, to needed public goods. Otherwise it becomes just another generic revenue source (i.e.: a tax) and, over-time, it becomes all too tempting to still milk it for more money. Red light cameras are a good example of this. Revenues from them (in Chicago, at least) went to the city's general fund. That didn't stop the city from reducing yellow light times to increase revenues.

I like that goal too, but I'm not sure how to really do that. A lot of states direct all lottery money to education but that just allows the states to spend less on education out of the general fund. Ultimately money is a fungible thing. No way around that.

That's certainly fair/true. FWIW, I appreciate the symbolism and/or keeping revenue streams constrained. At least that forces governments to be honest in taxation rather than allowing these back-door taxation strategies.