The VLF increase is part of the budget plan designed to reduce California’s $42 billion deficit.
The formula for VLF assessment is based upon the purchase price of the vehicle or the value of the vehicle when acquired. The VLF decreases with each renewal for the first 11 years.

The current VLF rate is 0.65 percent and will temporarily increase to 1.15 percent for most vehicles, effective May 19, 2009 (an increase of 0.5 percent)
The increase will be through June 30, 2011, but may be extended to
June 30, 2013.
Generally the increase is approximately $5.00 per $1000 in vehicle value. For example, a vehicle valued at $5,000 (when purchased) would see an increase of approximately $25.00.

If your vehicle registration renewal is due within 60 days and you would like a precise calculation visit the vlf calculator at:

It did not really go up. The temporary cut in registration cost enacted about 10 years ago has expired. The rates have merely returned to theor normal level.