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It's not meant to be funny, I think.
I read it as a reductio ad absurdiam attack on Palin's mayoral stance.
I'm not sure if the historic stance of then-Mayor Palin quoted is true, but if it is, that's very bad. However, the problem comes by saying that if 75% go unreported, and everyone bought a kit the saving would be X.
That's shoddy statistics. The saving would only be X/4.
It's still miserable, but i really take issue with people that screw up a great argument (in this case that Palin seems to have put money before rape victims), by overstating their case (that if this attitude was extended to estimated national statistics, and if reporting rates suddenly went to 100% the scheme would take one third of a billion dollars out of the cost of policing America.
Even if this is the heartless attitude she planned to adopt, the historic case proves the point, without the ridiculous extension.
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Overhead, the Albatross hangs motionless upon the air,
And deep beneath the rolling waves,
In labyrinths of Coral Caves,
The Echo of a distant time
Comes willowing across the sand;
And everthing is Green and Submarine
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