Portland officials say the city mistakenly sat on more than $1.6 million that should have gone to the Mount Hood Cable Regulatory Commission, the regional agency that bankrolls public access TV, community media centers and local broadband projects. The missed transfers stretched from 2020 through 2025, with the money staying in Portland’s general fund instead of being passed along to the commission.
According to internal finance records and staff findings reported by KGW, the city failed to move required cable franchise and PEG fees over to the commission during that period. Annual audits did not catch the shortfall because they focused on how the commission spent the money it received, not on what it should have been paid. The MHCRC program director called the situation a “technical error,” while a source close to the matter told KGW the findings are “deeply troubling” and damage public trust. Jairo Rios-Campos also said the jurisdictions appreciate Portland’s commitment to reviewing and correcting the issue in a transparent and diligent way.
Why the commission matters
The Mt. Hood Cable Regulatory Commission collects cable franchise fees and public, educational and government (PEG) fees from cable providers, then distributes that money to community media centers, local government access programming and a grants program serving Portland and east Multnomah County. The commission has already announced it will dissolve operations on June 30, 2026, as member jurisdictions shift responsibilities and manage remaining assets, according to the Mt. Hood Cable Regulatory Commission.
Impact on community media
MHCRC funding keeps MetroEast, Open Signal and a rotating pool of grants afloat, covering everything from classes and gear to studio access that help local media makers get on the air. Portland budget materials estimate the city’s share of PEG revenue at about $2 million per year, so missed transfers on the current scale could squeeze operations and grants that are already in flux as the commission winds down. City staff are working on code changes and budget proposals that would move MHCRC duties and restricted PEG dollars into city sub-funds for management after the commission’s dissolution, according to City of Portland documents.
Local reaction and oversight
The revelation has rattled partner cities and community media advocates, who say it raises hard questions about oversight just as the regional body is preparing to shut down. Gresham has formally asked Portland to bring in an independent auditor to comb through past records and reconcile what should have been transferred, and local officials across the footprint are pushing for a full accounting before any remaining funds are divided up, as KGW reported.
What happens next
Portland leaders say they will formally disclose the accounting error to the city auditor and conduct an additional financial review after July 1, 2026, while staff finalize how to absorb the commission’s work. City code amendments and budget plans now in front of the council outline how PEG revenues, records and grant responsibilities would be transferred into city control, with an eye toward protecting restricted funds that are already promised to specific programs. MHCRC staff and the member jurisdictions say they will try to honor current grants and commitments throughout the dissolution process.
