What size water dish are you using and where is it in comparison to the heat source?

Also have you tried running some sort of oscillating fan in the room? 

I use a pretty small water dish, s/he never really seems to drink from it just defecate in it. it usually drinks water droplets from the cage as well as its coils. I keep the heat to the front right side and the water dish away from it to reduce evaporation. Due to the amount of frogs I have and stuff I usually have a fan on low in the room as well as an airpurifier, the air purifier runs around the clock but the fan only runs 8am till 8pm (its on a timer with the lights) 

also to be honest here, I hardly use the heat source because my room is pretty much around that temp all the time for my frogs and other stuff I usually check the temps a few times a day since the weather has been kinda wacky here with warm days and cold nights. 

The best cure for this is cycling the humidity.  Are you using any other substrate, or just the paper?  I only have one enclosure I have to do this with currrently, and I spray very lightly daily.  Every three or four days I spray a little heavier, and every other heavy spraying I give a good soak to the substrate (coconut coir).  I also stir the coconut coir every few days.  If the substrate looks very wet on any day, I skip or mist even lighter accordingly. 

Part of the problem may be the butcher paper.  It is thick, and is designed to keep moisture from soaking through easily (this is how it keeps meat fresher for longer).  You are probably getting water running under the paper and collecting there without being able to dry out quickly at all, leading to the fungal growth.  (In my spare time for the last 20+ years, I have been a chef running busy kitchens).  You would probably bebest using another type of substrate.  Newspaper if you want to keep it simple, as the newspaper would dry out quicker. 

My first instict was to stop using the butcher paper... but I wanted some opinions. I put the few pieces of paper towel under the paper for that very reason its a small enclosure so I usually only give it a quick spray just to wet the walls a little since thats where it does most of its drinking. I also use the paper with my corn snake andhavent had any issues but it usually very very dry and doesnt ever get sprayed. I dont like using any other substrates because I like to clean my cages often. I was using news paper for a while but I had problems with ink and knew that couldnt be too good. I have been using the butcher paper for a good 4 months and like I said I try to change it out on a regular basis but the last 3 times of so is when I noticed the mold. 

should I try a different enclosure? 

Get rid of the existing mold and crank up the heat.  If I'm reading this correctly your cage temps are in the 70's, is that the high temp?  I'm kind of surprised your snake hasn't had any health issues yet.  I would recommend a temp gradient with a hot spot of about 85.  In a large enough cage (length wise) 88 probably wouldn’t even be terrible.  Raising the cage temps alone should fix future mold problems by drying out the cage on almost a daily basis.  Also, probably no need to mist every day or maybe not as heavy, or at least don't mist again until the cage is completely dried out.  I say probably because I don’t know where you live and what your ambient humidity levels are.

I never thought the temps were too low, that may have been another problem down the road but im not sure it explains the mold.. Ill raise the temp and see how it goes. Im going to leave this open and see what other say. shame on me for not knowing proper temps 

I am actually pretty embarrassed now, I just looked up in a few places about the temps and I truely had no idea and I dont know why I thought that was ok and where I got those numbers from 

Yeah, your temps are too low and with higher temps it'll dry out better. 

I would have less bedding on the bottom and clean it out more regularly- if the paper towels are constantly damp they will mold fast.  I live in a high altitude desert and usually mist 1-3 times a week. Internal hydration is far more important, even with green tree pythons. Paper towels are fine for substrate without the butcher paper IMO just because they don't defacate that much. 

Well 88 might be a little high unless you have a very long cage but I would say a hot spot of 85 is good.  It will definitely help in that all that extra heat will dry out the paper as well as any other water in the form of droplets, etc.  A lot of people use the butcher paper so I wouldn't change that if that's what you like to use, just raise the temps and maybe cut back on the misting, every other day or even less if your snake is shedding normally, etc.

I never thought of it to be an issue I get perfect sheds everytime Im sure once I raise the temps it should help, thank you for the advice.

I was going to hit on the temps, as well as not needing as much humidity.  I don't spray my chondros that much at all.  If you are going to spray regularly, I would change out the butcher paper for something the water can dry through, as compared to something that will hold the water down and prevent it from evaporating.

If that chondro is C.B., you probably don't need to spray as much either I wouldn't think. 

Now that I look at this again and notice that you say the cage is 16 x 16 x 16, 85 might be a little high since you're not going to be able to create much of a gradient and the snake won't really have all that much room to escape the heat if it's too hot.  I would start by maybe raising the temp to 82, see how the snake reacts and how well the cage drys out and then adjust acordingly.