That's not what it means at all. In policing, as in most organizations, the overwhelming majority of expense comes from paying salaries and benefits. Equipment makes up a relatively small portion of the pie. The only way to defund the police, or anything else for that matter, is to cut the headcount.
Why I don't agree with AOC on much, she was considerably more honest than other politicians when she said, "Defund the police means defund the police".
As others have already pointed out, meaningful improvements to policing in the U.S. would require spending more money, not less.
A lot of rabidly anti-police people are actually against body cams.
I think most of the anti-police complaints are due to selective releasing of body-cam footage. We are approaching the point where the court of public opinion swings against officers when potentially exculpatory body-cam footage is conspicuously missing; perhaps that will help assuage those concerns.