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In addition to its regulatory and spheres responsibilities, the statues authorize LAFCO to initiate and make studies of existing governmental agencies. Such studies shall include but not be limited to inventorying such agencies and determining their maximum service area and service capabilities.

In the event of a city incorporation or district formation, LAFCO has the responsibility for determining the amount of property tax to be transferred to the new agency, based on a formula provided in the Government Code.

LAFCO is also responsible - as are all public agencies - for ensuring that its actions comply with the provisions of the California Environmental Quality Act (CEQA). All LAFCO proposals are reviewed for potential environmental impacts prior to commission consideration.