No problem. See the 'fungus on mulch" discussions further down the page.

Dave

Here is a link that might be useful: Fungus on mulch

What kind of mulch are you using? If it gets hard and compacted it probably doesn't let water and air into the soil. I sure wouldn't use it.

Rodney

It's Long Island Compost Organic Mulch. If its creating a barrier for moisture penetration then I guess that can't be good.

"the mulch has a hard solid feel to it and only loosens up when you dig into it with your fingers"

That's the statement that I was basing my previous comment on. The only way to know if it allows water through is to check your soil under the mulch. If the soil under the mulch is moist then water can get through it and it should be fine, the fungus isn't a problem. And/or you could sprinkle a small amount of water on the surface of the mulch and see if it soaks in. If it soaks in then it's fine. If the soil isn't moist underneath the mulch then I'd remove it.

Rodney