First of all Welcome to EBN! We are glad that you found us. We welcome you and Chunk into our family.
Bullies are expensive you are so right!
Let's invite @cowsmom in on the conversation about a food/diet she thinks might work. Food is a major source of skin problems in Bullies. Sometimes spending more on food can actually save you money on vet bills in the future.
I am glad to hear that he is not miserable and scratching.
Any sign of fleas? They can cause allergic reactions in bullies.
Where he is balding is it moist or dry?
Let's start there