that is still a step backwards with the '88 motor.
I would approach your boat in a different way. basically two steps. back on the water in the best possible time while setting a foundation for performance. adding the performance.
I would pick up a 1998-2003 S-10 V6 from a you-pull-it like LKQ for $350. Strip it down to a short block, sell all the parts off the motor on craigslist to get $300 back in your pocket), build it back up with brass core plugs and marine head gaskets, go with a slightly better cam than what is in your 4.3, and a 4-barrel intake. drop that into your existing engine compartment use your existing drive and go with a 4-barrel intake and manifold and go with a set of eddie marine manifolds and long elbows. instant 230-240hp at the prop
you can get the motor back in and the boat running in a few days for about $600 (less if you sell any of the take-off parts) . for the intake and carb (about $700) can come later as well as the exhaust (about 1000)
under your budget, fits the boat, etc.
if your dead set at going to look for drop in motors and drive, stick with 1996 and newer. that gets you the vortec heads (1996 and later) and gets you the Alpha 2 (1992 and later). plenty of late 90's boats that are showing up with rotten hulls that you can get on Craigslist for well under your budget, pull the motor and drive, sell off parts like windshields, etc then scrap the hull and sell the trailer and your current drive.
if you build a 350 to drop in, your looking at a $150 core long block from a you-pull-it and about $1500 to get you a fresh motor (with a complete new rotating assembly). you can part out your 4.3, keeping the front accessories, mounts, flywheel and the starter. transfer to the 350. then all you need is the correct distributor and new exhaust and a set of gears for your current drive. stock exhaust manifolds and elbows will be about $500. under your budget and motor is new. however this will take a few months to be back on the water. This route costs the same if you build a 350 or 383 as the SCAT rotating assembly is $850 either way
a new long-block 350 for 1996/newer applications is only $2k
https://www.summitracing.com/parts/nal-12530282/overview/make/chevrolet (There are cheaper places, sometimes including your local GM dealer)