PORTLAND, Ore. - Portland mayoral candidate Sho Dozono announced Monday he will remain in the race even though he won't receive public financing for his campaign.

Dozono said Monday that he intends to run a "vigorous and competitive campaign" against his top competitor, City Commissioner Sam Adams.

Dozono said he wants to challenge the status quo and that Adams is a "City Hall insider" who believes he is "entitled to the Mayor's job." (To read Dozono's full statement, click here.)

Dozono's decision comes after a state administrative law judge ruled last week that he was ineligible for public financing because a lobbyist paid more than $25,000 for a poll on his behalf before Dozono officially declared his candidacy.

That violated the $12,000 limit on goods or services that a candidate participating in public financing can receive.

In voter-owned elections, candidates for city office receive all the money they need to campaign in exchange for limiting spending.

Dozono previously had said he would quit the race if he didn't qualify for taxpayer help with his campaign, not wanting to run a big-money race.

But on Monday he said that quitting was not an option when considering those who want a "different direction in City Hall." 

Dozono's campaign blamed Adams for Dozono's loss of public financing, claiming Adams "used every political maneuver possible to eliminate his only competition."

Adams was one of four candidates who appealed a ruling by the city auditor allowing Dozono to receive public financing regardless of the lobbyists' poll. That appeal eventually led a judge to overturn the auditor's findings last week.

Adams said Monday he was "pleased" that Dozono was staying in the race but added that Dozono's problems were his own making and claims he tried everything to get Dozono out of the race were "ridiculous."

"It's time for Sho Dozono to accept responsibility for his own actions and quit trying to place the blame on others," he told KATU.

Dozono said Monday he followed all the rules for public campaign funds and would likely win if he appealed the judge's ruling. But he believes such an appeal would be a waste of time considering there are only 35 days left before the first ballots are mailed.

Regardless, Dozono said he plans to limit his campaign contributions similar to those set by public financing.

Adams conducted polls and created an in-house campaign staff and an independent city operated Web site to promote a $464 million fix to Portland's roads - essentially turning the Bureau of Transportation "into his own self-promotion machine and campaign slush fund," Dozono's campaign claimed.

- The Associated Press contributed to this report. 

Dozono's campaign manager released this statement following the announcement:

“For all the people who want a different direction in City Hall, who are working for me or some other candidate or cause they believe in, I say, quitting is not an option. I am announcing today that I will continue my campaign for Mayor of the City of Portland. I intend to run a vigorous and competitive campaign to end the same old politics that protect City Hall insiders and the status quo”, said Dozono.
 
“This is about a City Hall insider, who thinks he is entitled to the Mayor's job -- using every political maneuver possible to eliminate his only competition. Commissioner Adams championed a flawed system that Sho tried to make work and he receive specific instructions from the Auditor…only to have Sam Adams spend $10,000 to over rule the Auditor’s decision. If Commissioner Adams gets his way, the system will be forever rigged to protect the incumbent and the status quo. Sam Adams’ legal challenge was never done to protect the system; it was done for his own self-interest. Commissioner Adams has a hard time distinguishing what is in the public’s best interest and his old-style inside City Hall manipulation of the Voter-Owned Elections process is the wrong politics for Portland and demonstrates, yet again, why Sam Adams is the wrong candidate to lead our city”, said campaign manager Amie Abbott.
 
“Now let's get serious about what Commissioner Adams calls the need to protect the integrity of the system, reinforcing the values of transparency and fairness. During the course of his administration, while planning to run for Mayor, Sam Adams conducted polls, created an in-house campaign staff, created an independent, city operated website and sent mailings to Portland households. Sam Adams was promoting a plan that would be a cornerstone of his candidacy for Mayor…a 400 million dollar transportation TAX on Portland homeowners and businesses. The worst part about that was he did it all with tax payer monies, converting the Bureau of Transportation into his own self-promotion machine and campaign slush fund”, said Abbott.
 
Abbott stated further, “In the name of integrity, fairness and transparency, I challenge Commissioner Adams to release the real budget and expenditures for this campaign he conducted at the public’s expense. Ask the hard working city employees; about the commissioner’s behavior. With the true numbers out in the open, the public will be able to distinguish between what Sam Adams did that was good for them from what was good for Sam Adams…he can have his day in court on May 20.”
 
“I look forward to the campaign ahead...there is a lot to talk about when it comes to bringing about the kind of change that makes the future better for all Portlanders.and in determining which candidate for Mayor is best able to bring a new perspective on leadership that harnesses the energies of all our citizens to do what is best for Portland”, said Dozono.