This article examines the effects of the item veto in the states in a new fashion. It provides a dynamic analysis, in an attempt to answer the question of whether the item veto inhibits the growth of state spending. It also draws distinctions between the simple item veto and the more powerful reduction item veto, as well as differentiating between different spending categories. The results demonstate that, for a 16 year period, the reduction item veto appeared to have a moderate inhibiting effect on the spending category most likely to be restrainable through the item veto.