So what do they do with all our registration money? It goes up regardless. California robbing it's people...
Vehicle registration fee funds go into a big pot and the money is used for all sorts of things, including funding the CHP, the DMV, and a lot of other miscellaneous organizations and programs that are vaguely related to transportation. I am not sure how much, if any, actually manages to make it to physical road repair and maintenance, like the gas tax does. I don't think there are any specific laws that specify where the money goes.
It is likely left up to government regulators and the yearly state budget to parcel out the funds.
I once read an article about traffic fines and where they went. There was a basic fine that was distributed to the state's general fund and then that amount was doubled and those fees went to all sorts of random social and court-related programs, which is why a $150 traffic fine ends up actually costing $450 in California.