Aluminum compression post
Yeah; that's not good. There is no telling how thick that aluminum still is. I wouldn't trust it.
If I recall that comp. post is a stand-alone-- not against the main bulkhead since with the head aft there isn't a main bulkhead on that boat. That makes the post itself and the tie-ins at each end all the more important. Fix it before you go sailing.
You could hack it out with a Sawz-All and have a new one made. It is only aluminum, type 6066 or something close. See your metals guy and see what he has. Make it at least the gauge of the spar itself, or a gauge or two heavier. A section of spar would also work (often done over the years and looks better below). To determine the length add the saw blades' widths back into the piece you cut out. A wee bit too tall is always better than too short-- not because you can shim the shorter or cut off the longer but because you can wedge that sucker in there and get some of your sagged deck height back. An eighth- to a quarter-inch too long can be made to work.
It appears to be welded at the bottom to something. This makes it hard to repair-weld in place. If possible a strong sleeve could be welded like a cuff around the bottom,about 12" high, leaving the rest as-is. But you would have to be sure the welds were really good farther up because they'd be taking shear loads, not the best thing when it comes to in-situ welds like this.
Reinforcing it with anything else is really just a waste of time. Steel, galvanized, angle, etc. --just please don't go there.
This looks like bimetallic corrosion. Is it standing on some kind of metal bracket? If you must stand it right ON anything metal, don't. Make a pad out of G-10 or even any flat layup of fiberglass, bed it to the metal with 5200 and stand it on that.
If you have the opportunity to replace it, consider getting the whole thing anodised (after cutting and welding new top and bottom plates) or just Awlgripped (inside too, as far as you can reach). Putting a weep-hole near the bottom (and perhaps flooding it with epoxy till the weep-hole really is at the bottom) is a good idea. You could fit it with a plug to keep out critters.
It MUST have a flat plate welded to the top of it-- as well as to the bottom. You are not propping a picnic table with a 2x4 here. The flat plates distribute the load and on top it facilitates mounting deck hardware. Also with no main bulkhead you need the post to tie the hull and deck together in the first place (against upwards pull of halyard blocks on deck). So this member is structural in tensile as well.
Rest assured that this is what it looks like but it won't be any more. In this case it is what it looks like. Aluminum is not THAT expensive. Check surplus places. Any good plater can to anodizing-- ask about where you are. Welding is not a big deal either, nor expensive. If it were me I know a guy who would do it for steak and beer. Again, ask about. This is a relatively easy and cheap fix; so go for it.