Are fungal infections worse with people with diabetes?

Yes: Diabetic patients are much more susceptible to fungal infections from superficial skin infections to gas-producing urinary tract infections to a severe sinusitis. In general though, infection risk in diabetic patients seems to be minimized by proper glycemic control.

Not always: Certain fungal infections, such as vaginal candidiasis, are more common in diabetes, but not all types of fungal infections are more frequent in diabetics (http://sgoti.Ws/ouktrx). Some types of fungal infections, such as seen in invasive otitis externa, are almost exclusively found in diabetics (http://www.Ncbi.Nlm.Nih.Gov/pubmed/19069086).