So I just had to repair this exact issue on my boat. The lip seal in your pump has failed. To replace it you have to remove the pump from the boat remove the pulley from the pump, remove the pulley shaft and bearings from the pump, drive out the old seal with a socket and then install the new one from the inside. It's not too bad of a job, took me about two hours including removing the pump from the engine.
Worth noting that freezing the bearings and shaft and heating the pump body in very hot water makes reinstalling the shaft/bearings easier.
When you have the pump apart check the bearings they should be rust free and spin smoothly.