DAYBREAK DAILY: McDonnell reviewing wife's relationship with foundation

ABC7 WEATHER: Overcast with rain likely and highs near 80s.

‘GOOD MORNING WASHINGTON’: Among the stories – Follow-up coverage of the hardware store fire in D.C.; Philadelphia building collapses; much more, beginning at 4:30 a.m M-F.

A CLOSER LOOK: More odd money in Virginia, per the Richmond Times-Dispatch, “Gov. Bob McDonnell is looking into his wife’s relationship with the Frances G. and James W. McGlothlin Foundation and examining whether he needs to correct his financial disclosure statements, he said Wednesday. Maureen McDonnell was paid $36,000 in 2012 for her work as a consultant to the family foundation and to the charitable arm of the United Company, a coal and real estate business based in Bristol, The Washington Post reported this week. James McGlothlin founded the company in 1970 and serves as its chairman and chief executive officer.

“Virginia law requires all state elected officials to report employment that pays them or an immediate family member more than $10,000 annually. The governor’s 2011 and 2012 financial disclosure forms listed his wife as a paid trustee for the foundation but did not list an income from the position.”

DOMESTIC SNOOPING: Of phone records, per the New York Times, “The Obama administration is secretly carrying out a domestic surveillance program under which it is collecting business communications records involving Americans under a hotly debated section of the Patriot Act, according to a highly classified court order disclosed on Wednesday night.

“The order, signed by Judge Roger Vinson of the Foreign Intelligence Surveillance Court in April, directs a Verizon Communications subsidiary, Verizon Business Network Services, to turn over “on an ongoing daily basis” to the National Security Agency all call logs “between the United States and abroad” or “wholly within the United States, including local telephone calls.” The order does not apply to the content of the communications.”

E.W. JACKSON: He makes his case, per the Virginian-Pilot, “E.W. Jackson, the Republican nominee for lieutenant governor, said Wednesday that he's disappointed U.S. Rep. Scott Rigell refuses to endorse him because of strong anti-gay comments, but the Chesapeake minister said he's not backing off his past statements. Jackson, who said he's tried to contact Rigell, said his speeches and pronouncements about the evils of homosexuality should be seen as a preacher talking about what he believes the Bible says - not a political candidate's views on how he would govern.”

MARTIN O’MALLEY: A problem with prisons, per the Washington Post, “As a young city prosecutor, then a council member, then mayor and then governor, Martin O’Malley has had to contend with the crowded, mismanaged and ultimately corrupt Baltimore City Detention Center. On Thursday, the Maryland General Assembly will begin probing what federal authorities say has been a years-long failure of leadership under the Maryland governor.”

PEPCO VOWS QUICK ACTION: Stay tuned, per Gazette.Net, “With hurricane season started, Pepco officials said the utility is ready for Mother Nature. “The key is for all of us to be prepared,” Pepco Region President Thomas Graham said. He described the utility’s new technology and tree-trimming efforts in advance of the season’s storms.

"But one Pepco critic said it is highly unlikely that the company is ready to weather another major storm. The repairs and replacements needed to improve reliability will take years, said Abbe Milstein, founder of Powerupmontco, an organization that serves as a voice for Pepco customers who are unhappy with their service and the utility’s reliability rating.”

POLITICO PLAY: “Not every Republican learned Todd Akin’s lesson from 2012 – and Democrats noticed. This week alone: Sen. Saxby Chambliss blamed sexual assaults in the military on hormones, conservative pundit Erick Erickson credited biology for male dominance in society and Mississippi Gov. Phil Bryant said working moms are making kids fail in school.”

WASHINGTON BURNING: Actually, it just looked that way, per ABC7—WJLA, “Firefighters in the District are battling a large fire at a Capitol Hill staple. Smoke could be seen for miles across the District. The fire broke out at Frager's Hardware on Pennsylvania Avenue SE in Capitol Hill Wednesday evening. The store, which was established in 1920, is a popular spot for presidents and is often an area to stage political events.

“John Weintraub, one of the owners of Frager's, says the fire started in a lumber area on the 11th Street side of the store. Thick smoke could be seen from Arlington National Cemetery, Nationals Park, Logan Circle, and even Tenleytown.”

BRAGGING RIGHTS: In the classroom, per the Washington Examiner, “Fairfax County Public Schools beat out local rival Montgomery County for the highest graduation rate among the country's 50 largest school districts, according to a report released Thursday.

“After four consecutive years at the top of the list in Education Week's annual "Diplomas Count" report, Montgomery County Public Schools' graduation rate for the class of 2010 dropped 4 percentage points from last year's report to 84 percent, tying for second with Baltimore County Public Schools. Fairfax County Public Schools slid 1 percentage point to 85 percent.”

D.C. BUSINESSES: Best and the brightest, per City Paper, “Mayor Vince Gray is taking another shot at the city's Certified Business Enterprise system. The first time he tried to tackle the troubled contracting program, he ended up vetoing the resulting bill a few months later. (Wednesday), Gray tried again, releasing proposed legislation from a task force of "prominent business leaders."

INTERESTING GRANT: You don’t see this every day, per the Washington Times, “Montgomery County Public Schools is set to receive a $65,000 education grant Thursday from a foundation based in the Republic of Azerbaijan, money that school officials say will buy technology for classrooms and an opportunity for seriously disabled students to more fully participate in their education.”

SPORTS, BRIEFLY: Nationals lose 10-1 against the Mets.

TRENDING ON ABC7 FACEBOOK: “The winner of that huge $590 million Powerball jackpot has finally come forward! It’s 84-year-old Gloria MacKenzie from Zephyrhills, Fla. In a statement, MacKenzie said a person buying a Powerball ticket in front of her let her go ahead in the line - and MacKenzie ended up buying the winning ticket.”

NEWSTALK: Among today’s guests (10 a.m., NewsChannel 8) are Holocaust survivor Gene Klein and his daughter, Dr. Jill Klein, who will discuss their new book, "We Got the Water, Tracing My Family's Path Through Auschwitz."

--Skip Wood