Portland mayoral candidate Sho Dozono is considering dropping out of the race, his campaign officials said Thursday.

The news came after word that Dozono is no longer eligible for matching city funds to run his campaign.

Judge David Gerstenfeld made the ruling Thursday, making Dozono ineligible for $161,171 to finance the campaign.

Those who help run Dozono's campaign said they are “very disappointed” by the decision that made Dozono ineligible for public financing. They still believe the city auditor came to the correct decision and that Dozono had followed that office’s direction “every step of the way.”

"I was very devastated. I think it's really bad for the city of Portland," said Dozono. "I think it's not good for politics in the city not to have a competitive race. But it is a decision I have to make with my family and my advisors and it'll take me a few days before I can reach that decision."

His opponent Sam Adams is the one who appealed Dozono's public financing and won.

Dozono blames Adams from trying to cut him out of the race, describing it as political 'knee-capping.'

The Adams campaign disagrees.

"Let's be very clear," said campaign manager Jennifer Yocom. "Mr. Dozono's problems are of his own making."

Adams spent about $10,000 from his campaign on the attorney who won today's court decision against Dozono's public funding.

Dozono will now sit down with his family, friends and volunteers to consider whether he should stay in the race or drop out.

Campaign officials said Dozono will have to weigh an outpouring of support against earlier statements that he’d only run if he got public financing.

A judge found that Dozono got contributions in excess the state limit in order to conduct a poll in December.

"We appreciate the thoughtful review by Administrative Law Judge Gerstenfeld. He had all of the necessary facts for his final order, and we respect his decision," City Auditor Gary Blackmer said.

Dozono was certified on March 5, the Auditor has withheld payment of public funds until issuance of a final order.

(KGW Reporter Randy Neves contributed to this report)