My guess(and it's just a guess)is that when the 17" wheel was installed, it dropped the front end enough that the bike's geometry is screwed. If that's the case I think the best fix would be to shorten the suspension, front and rear. But, since you're on a budget, maybe just try lowering the rear with some longer dogbones. You could probably find some online, or maybe just see if you can get a local machine shop to make a pair. They're pretty simple pieces, it shouldn't cost much.
Or I could be completely wrong.
The heavier fork springs idea is a good one, the steering damper the best idea but not cheap.
And KTM has a shorty fender for Supermotard bikes.