Democratic lawmakers proposed a $1 billion stem cell research initiative yesterday, saying New York could be left behind after California voters approved $3 billion for human embryonic stem cell research.

The Senate Democratic leader, David Paterson, said the initiative would be financed through the sale of up to $1 billion in general obligation bonds, subject to voter approval, over 10 years. “Many, many jobs will be lost otherwise,” he warned.

Andrew Conrad, co-founder of the National Genetics Institute, who joined Mr. Paterson on the steps of City Hall, said the goal is to create funding over a 10-year period. “For those of us in the medical community, we know that this steady source of funding is incredibly important,” he said. “This is enough money to keep the best minds, in fact to recruit the best minds into the state of New York to pursue stem cell research.”

Many scientists believe that stem cells, which can potentially grow into any type of human tissue, could someday be used to repair spinal cord injuries and treat a range of diseases including diabetes and Parkinson’s.

California voters’ 59% approval of the multibillion-dollar stem cell bond measure in November represents a rejection of Bush administration policy, which has restricted federal funding for research involving the destruction of human embryos. Jack Hidary, co-founder of Vista Research, a financial research firm, said New York has a challenge because California and other states are showing their ability to lead in biotech research. “We must either answer this challenge or suffer the consequences,” he said.

Mr. Paterson said his proposal would create a New York Stem Cell Research Institute to regulate research and provide funding through grants and loans.