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* * * * * * MONDAY, JANUARY 27, 2014 ~ VOL. CCLXIII NO. 21 WSJ.com HHHH $2 .00

freeze,” while Missouri Gov. JayNixon is calling for a boost inK-12 spending and holding tu-ition steady at state colleges.

The improving fiscal picture iscoming in an election year inmany places, which is further an-imating debates over whether torestore recession-era budgetcuts, fund new programs or re-duce taxes. Some governors orlegislators want to use themoney as a cushion against likelyswings in income-tax collectionsor to address mounting pensionand health-care costs.

While debates can break alongtraditional party lines, withDemocrats arguing for new

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Governors across the U.S. areproposing tax cuts, increases inschool spending and college-tu-ition freezes as growing revenueand mounting surpluses havestates putting the recession be-hind them.

Wisconsin Gov. Scott Walkerand New York Gov. AndrewCuomo are pushing for tax cutsas collections rise, while puttingmoney into job-training and pre-kindergarten programs, respec-tively. In Georgia, Gov. NathanDeal is proposing the largest in-crease in K-12 school fundingsince the recession to mark whathe called the end of the “deep

agreements. Now, only tiny Mol-dova and Georgia are on track tosign deals.

Ukraine, which Mr. Putin oftencalls a “brotherly nation,” is alsoa sensitive domestic issue forRussians. A defeat for Mr. Yanuk-ovych could send a powerful sig-nal within Russia, whose toughantiprotest laws and securitytactics seem to have served as amodel for his response to the

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secure his political future afterabruptly turning his back on apartnership deal with the Euro-pean Union.

For Russian President Vladi-mir Putin, winning Ukraine’s al-legiance was a significant victoryin his quest to reassert influenceover former Soviet republics.Ukraine was the centerpiece ofan EU program aimed at coaxingdemocratic overhauls in the re-gion in return for free-trade

ernment facilities and dug in atlocal administrations buildingsthey are occupying in several re-gional capitals, in a challenge toMr. Yanukovych’s pivot to theeast and Russia’s attempts to as-sert political and economicpower in former Soviet republics.

The widening rebellion throwsinto question the future of Mr.Yanukovych, who in Decembersealed a multibillion-dollar bail-out from Russia that appeared to

KIEV, Ukraine—Antigovern-ment protests intensified onSunday, posing the most seriousthreat to President Viktor Yanuk-ovych’s rule since demonstra-tions began here more than twomonths ago and raising thestakes in a battle for influencebetween Russia and the West.

Tens of thousands of protest-ers across Ukraine besieged gov-

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What’sNews

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World-Widen Obama will stress that heintends to take unilateral ac-tion on a host of issues in hisState of the Union addressamid a sagging job rating. A1nAntigovernment protestsintensified in Ukraine, posingthemost serious threat toPresident Yanukovych’s rulesince demonstrations began. A1n Egypt said presidentialelections would be held beforea parliamentary vote, raisingconcerns the next leader willhave too much power. A6n Syria offered to let womenand children leave the besiegedcity of Homs during peacetalks, but the opposition dis-missed the move as a ruse. A6n A Texas hospital said itfollowed a judge’s orders andended life support for a preg-nant brain-dead woman. A3nA suicide blast killed fourpeople in Kabul, the latest tohit the Afghan capital. The Tal-iban claimed responsibility. A7nRival Thai political factionsclashed, leaving one dead, asantigovernment protestersblockaded polling stations. A7nPolice identified the suspectwho shot and killed two peopleat aMarylandmall but werestill searching for amotive.A3nA U.S. missile strike insouthern Somalia appears tohave killed a senior al-Shabaabmember, U.S. officials said. A7nA boat full of tourists cap-sized off India’s Andaman Is-lands, killing at least 21. A7nDaft Punk won the GrammyAwards’ top prize, album ofthe year, for the duo’s ‘Ran-dom Access Memories.’

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Few investors are seekingshelter from emerging

markets in U.S. stocks, prompt-ing some to predict a correc-tion. The global selloff contin-uedMonday in Asia; Japaneseshares were down 2.7%. C1n ICAP is set to lose its cen-tral role in setting a key in-terest-rate benchmark asregulators continue probesinto alleged rate fixing. C1n J.P. Morgan CEO Dimonand a former top aide agreedto a multimillion-dollar reso-lution of a hiring dispute. C1nThe price spread betweenU.S. and foreign steel hasreached near-record levels,sparking a surge of imports. B1n Stockholders filed 234federal securities class-actionsuits against U.S. firms lastyear, the most since 2008. B1n The FAA is set to ordersafety checks of over 400Boeing 767s, citing hazardsfrom movable tail sections. B3nMichaels said it may havebeen the victim of a data-se-curity attack, the third retailerto report such activity. B3nAT&T’s chief metwith theEU’s top telecom regulator lastweek as the U.S. carrier eyes apossible deal in Europe. B2n Japan posted a record tradegap for 2013 despite a weakeryen, as efforts to lift exportsfailed to make headway. A6n Taiwan’s Hon Hai is weigh-ing a plan to build a display-making plant in the U.S. B6n P&G said sales in emerg-ing markets remain strong,growing 8% last quarter. B4

Business&Finance

BY JAMES MARSON

Pressure on Ukraine LeaderMounts as Protests Intensify

BY MARK PETERS

States Weigh New PlansFor Revenue Windfalls

BRISTOL, Conn.—In the con-trol room of ESPN’s headquar-ters, a row of screens showsvideo feeds going out to cableproviders for each of its televi-sion channels. But a growingpart of ESPN’s future lies acrossthe room, where a similar setuptracks transmissions to the In-ternet.

On a recent Saturday, techni-cians were busy streaming sev-eral dozen games, some at thesame time as they were on tele-vision and others that weren’t televised at all. Da-mon Phillips, in charge of the service, used a tabletcomputer to monitor how many people werewatching online.

“I’m obsessed with this,” he said, pointing tothe usage tally, which he starts checking at 5:30a.m. while on his exercise bike. “I look at it all daylong.”

The app, called WatchESPN, ispart of an aggressive push byESPN into online services as paytelevision matures. ESPN pio-neered sports TV on that me-dium and for three decades rodea steady rise in U.S. cable andsatellite TV subscriptions. Thesenow have leveled off and appearto be contracting. ESPN is at theforefront of the TV industry’s ef-forts to expand into Internet dis-tribution.

The company, which gener-ates about 40% of majorityowner Walt Disney Co.’s operat-ing profits, sees the app as away to cash in on growing de-mand for online video. But withits TV offerings still lucrative,

ESPN is walking a fine line, trying to avoid doinganything that might encourage customers to droptheir pay-TV subscriptions.

It is a challenge others in the business also arewrestling with. ESPN’s strategy is to allow onlypay-television subscribers to stream games thatair on ESPN TV channels.

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By ShaliniRamachandran,Amol Sharma and

Matthew Futterman

GAME TIME

ESPN’s Internet RolloutTests Television Cash Cow

WASHINGTON—President Ba-rack Obama’s State of the Union ad-dress Tuesday night will seek toshift the public’s souring view of hisleadership, a challenge the WhiteHouse sees as critical to shapingthe nation’s policy direction overthe next three years.

Mr. Obama will emphasize hisintention to use unilateral presiden-tial authority—bypassing Congresswhen necessary—to an extent notseen in his previous State of theUnion speeches, White House offi-cials said.

He also is expected to announcethat some of the nation’s largestemployers, including Xerox Corp.,AT&T Inc., Lockheed Martin Corp.and Procter & Gamble Co., havesigned aWhite House pledge agree-ing not to discriminate against thelong-term unemployed whenmak-ing hiring decisions, according to adraft of the policy and interviewswith several people familiar withthe matter.

Mr. Obamawill stress that he in-tends to take unilateral action on ahost of other issues: infrastructuredevelopment, job training, climatechange and education. Administra-tion officials hinted broadly at theassertive new direction Sunday.

“We need to show the Americanpeople that we can get somethingdone,” Dan Pfeiffer, a seniorWhiteHouse adviser, told CNN as part ofa round of interviews previewingthe speech.

Themore aggressive, executive-led approachmarks a recalibrationby the White House after seeinghow congressional Republicans re-sponded in 2013 to the president’s

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BY CAROL E. LEEAND DAMIAN PALETTA

ObamaTo AssertUnilateralAgenda

Saturated MarketGains in U.S. pay-TV subscriptionshave vanished; change from ayear earlier

The Wall Street Journal

Source: MoffettNathanson

3.0

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1.0

1.5

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’08 ’09 ’10 ’11 ’12 ’132007

3Q –0.24%

Indian Military Shows Its Colors

PARADE DUTY: Soldiers marked the nation’s 65th Republic Day with a show of military might in New Delhi on Sunday. Japan’s prime minister satside-by-side with India’s president on the reviewing stand in a sign of the countries’ growing alliance as they contend with a more-dominant China. A6

Partha

Sarkar/X

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maPress

TEHAMA COUNTY, Calif.—Many elephants in U.S. zoos havethe same problem as visitors whogawk at them: They are fat.

“The general public are famil-iar with Disney and the tale ofDumbo,” said Deborah Olson, ex-ecutive director of the Interna-tional Elephant Foundation, aconservation group. “They’redrawn as round creatures, so thegeneral public has this concep-tion that they’re round instead ofwhat they truly look like in thewild.”

But now there is hope. In therural, rolling hills of Northern

California, plans are under wayfor a 4,900-acre preserve thatwould keep African elephantshealthy, in shape and breeding.Part fat farm and part laboratory,the elephant preserve wouldstart with three to five elephants

and let them grow into a herd of12 to 15 over two decades.

Scientists also would conductresearch into the “near-wild”herd, and school groups wouldcome to learn about African ele-phants, considered to be athreatened species because ofpoaching in the wild.

The preserve would be fundedby a foundation set up by RogerMcNamee, co-founder of SiliconValley private-equity firm Eleva-tion Partners, and run by stafffrom California’s Oakland Zoo,including Joel Parrott, the zoo’spresident and chief executive.

The proposal highlights aPleaseturntopageA10

BY ZUSHA ELINSON

ElephantsWith TooMuch Junk in the Trunk Get a Fat Farmi i i

Pachyderm Preserve Planned in California for ‘Near-Wild’ Herd

African elephant

TODAY IN MARKETPLACE

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