Bullies are in need of solutions too, but that is no excuse to let their problems spread out and have a huge impact on other kids and on society. The same thing is true of criminals. Most criminals (even up to rape and murder) don't start out as ordinary, well adjusted folks who one day wake up and go "huh, I'm bored, guess I'll go be bad", they lead troubled lives. They have been wronged by others and by society and sometimes they express that through theft, self-medication via drug use, violence, molestation, rape, murder, etc.

We have to triage the problem. First, prevent harm from occurring to others. Second, attempt rehabilitation.

Remember that bullies also create problems in other kids which can force them to act out. Force them to drop out and get into drug use. Force them to become bullies themselves, or thieves, etc.