Its a riot, right?
Most here seem to be jumping way the heck off base.
A riot, does not, by its nature, automatically endow those keeping the peace with the right to use deadly force to effect arrests, defend property or other necessary counter-riot duties.
The budget, while arbitrary, is actually on the high side, when one thinks about it, as most of the weapons employed in civil disturbance duties are strictly non-lethal or less lethal.
There is also a matter of associated tactics. Arming everyone with a shotgun may seem like a "good" idea, but realistically, a long gun is often times a liability in dealing with a civil disturbance, and the long gun bearers (grenadiers or designated marksmen, if one wants to get technical), usually have to be protected by everyone else.
Given the breakdown, here is my "riot squad" (and I'll note that this is a real consideration for me at work, and 12 officers is a good approximation of what I have to work with and the breakdown of equipment that I list is what I would actually have immediately available to counter a riot or other major disturbance):
Two 5 Officer Teams, each issued the following on an individual basis:
Sidearms (I am not budgeting for those, as they are a "given")
Protech riot helmet-$110
Protech polycarbonate 36" riot baton-$30
DRMO surplus PSAGT vest (in addition to normal issued concealable armor)-free (for the sake of budgeters, I'll also call it $50).
Issued OC spray-$15
MSA gas mask and carrier-$200
A bunch of extra flex cuffs-$10
100 oz CamelBak-$75
Additional items, issued 1 or 2 per team:
DefTech Mk IX OC cannister-$25
PepperBall SA200 launcher-$400 (although usually, when you buy a bunch of rounds like we do, they kick in a free launcher or two for every 500-1000 rounds or so).
I'll maintain my $2500 tricked out M4 for DM use (thank you generous taxpayers), particularly since I am the "Squad Leader" and keep one grenadier with me carrying a bag of bangs ($25 each) and Stingball grenades ($50 each). If we can't handle it, then we retreat and wait for the cavalry (SWAT and mutual aid). No warehouse is worth getting killed over.
When you really look at it, it costs my particular agency about $115,000 for the first year to put a new Patrol Officer out there, and that includes all of the above riot gear that I listed. Only about 50K of that (roughly) is salary, benefits and supervison. The rest is equipment.