Funding for research is very good despite the state's financial mishaps. Dollarwise, UCHSC is the #10 recipient of NIH funds in the country. There have been a few cases where facilities that were supposed to be state funded had their funds revoked, but the school's been very good about finding alternative sources of funding or just paying for it themselves. Generally, for every grant that is given for research, another amount that is about %50 of the grant value is given to the school to pay for physical plant type things. Since they receive so much money in grants from the NIH and private sources the school has a lot of money to cover the lack of state help.
The only real problem right now is that the medical school is stuck at the old location for a few more years while the graduate school has moved to the Fitzsimmons campus, so you'll be taking the shuttle or driving between them often. It's about a 20 minute drive between them if you can avoid rush hour.