The Punks were a clique that were cut very early on from development. They appeared in the comic strip that came with the limited edition of Bully.
The only known Punk is Sid, but a second punk, one who wears his tie as a headband, and a large one giving orders, can be seen in the panel of the comic strip in the game manual.
It is probable that the Punks evolved into the Dropouts, who were subsequently renamed the Townies. Several of the Townies wear somewhat punk-like clothes and hairstyles, and Zoe Taylor was even stated to be a punk on a website with artwork of old versions of characters.
The large punk could possibly be an early version of Russell, as Russell's old model looks like him. His speech pattern is different, but seems to enjoy bullying, as he gets the Punks to trick Jimmy into thinking he was invited to a Halloween party in the comic strip.