As a Jew I am certainly no friend of Nazism in Germany or anywhere else on the planet. However, truth is more important than propaganda, even if that propaganda portrays the bad guys as really bad guys - which the Nazis certainly were and continue to be to this day.
That said, Hitler did not defund the German police. He did, however, merge them into the State security forces in every country he conquered creating basically a military police force.
A great read and informative book by Christopher R. Browning is "Ordinary Men, which shows how local law enforcement were transformed into a Nazi police force and were utilized, first in Germany and particularly later in Poland. This book should be required reading in all police academies in The United States and throughout the world to ensure this can never happen again.