Issues with Fungi (not Feng-Shui)

So in landscaping the yard, we opted this year for Scott's brand Black mulch. They say on the package that the mulch will never fade, and will keep looking great year after year.

What they didn't mention is the propensity to grow giant fungi all over the place. I'm not sure if the fungus comes from the heat generated by the black color or if the 80 bags we bought had spores already inside the bags.

Here's what we've got -- it starts out as this yellow stuff, then turns white, then starts BELCHING spores for days and days.